After hearing from close to 100 Loan Asset Managers and Sell-Side firms, it seems that most want to see the elimination or drastic reduction of Assignment Fees. Charging multiple assignment fees for one trade was never the intent of the Fee. This development was only promoted by the Admin Agents to capture all trades in the name, regardless if they had the best price or best market. Again I say, let the dealer earn your business, don't be forced to sell or buy from them because you need to sub-allocate the trade multiple times. It seems the only negative responses from accounts I have heard is that they believe if they speak up and take a stand against the few remaining Arrangers that still haven't changed their Assignment fee policies they will get shut out of new deals or their allocations will be cut. Well I have a way around that. There is a "working group" that would suggest that accounts commit to new deals if the following language was part of their commitment; "subject to a maximum assignment fee payable for any trade (regardless of sub-allocations) of (some nominal amount to be determined)". Now we need critical mass, the buy-side "working group" would compile a list of all firms that agree to have all future commitments be subject to this Assignment Fee Language. And to alleviate the fears of some, the list will not be made public until we have over 50 firms on the list. By the way, CSFB will continue to eliminate Assignment
Fees from all of their Admin Agented loans. Please let me know if we can add you to the growing list of firms that say "enough is enough" with these outrageous Assignment Fees. ARRANGERS MUST LISTEN TO THE VOICE OF ALL THEIR BUY SIDE CLIENTS!!! The buy side working group is looking to implement this plan for all deals right after July 4th 2004. No better time then Independence Day to rid our market of this high price cost of doing business.
Please call me if you would like to discuss further (212) 325 9913.
Barry Zamore
Managing Director
CSFB