Popularity of self-arranged deals eats into loan banks’ fees

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By Elly Whittaker
13 Nov 2014

European companies are increasingly approaching the loan market with the help of consultants and lawyers, instead of asking banks to arrange and coordinate loans.

“Fees are going away because clients can do self-arranged deals,” lamented one German loans banker. 

While the volume of syndicated loans has been high this year, income from fees has been low for banks. “Almost every deal has been insourced,” leaving banks sidelined and missing out on arrangement fees, ...

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