(Reuters) - These so-called "assignment fees" were traditionally
charged by banks to cover the costs of transferring ownership
of loans, but have proved an effective tool for trading desks
at commercial and investment banks to control the trading of
loans originated by their own firm.
In the world of syndicated commercial loans, only the bank
that originates and administers a loan has the ability to waive
the typical assignment fee of $2,500 to $3,500 per trade. If
the fee is not waived, buying and selling small blocks of loans
becomes more costly.
Read more at Reuters.com Bonds News
charged by banks to cover the costs of transferring ownership
of loans, but have proved an effective tool for trading desks
at commercial and investment banks to control the trading of
loans originated by their own firm.
In the world of syndicated commercial loans, only the bank
that originates and administers a loan has the ability to waive
the typical assignment fee of $2,500 to $3,500 per trade. If
the fee is not waived, buying and selling small blocks of loans
becomes more costly.
Read more at Reuters.com Bonds News
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