Competitive Bid Option

A form of the commercial loan syndication where banks submit competing bids on a loan. They can also sell their portion of the participation in a loan to other parties. The borrower has a choice of banks to choose from, and will generally pick the lender with lowest rates and/or fees. In most cases, the leading bank in the syndicate allocates the majority of the actual loan balance to other lenders and only keeps a small percentage of the loan for itself.

Competitive bid options are usually priced at just above the lender's cost of funds, or an index such as the LIBOR. The competitive bid process for commercial and industrial loans with U.S. banks closely resembles the tender panel process in the Eurocredit market. In this arrangement, several banks bid to buy short-term corporate notes via a revolving underwriting facility.


Investment dictionary. . 2012.

Look at other dictionaries:

  • offerta competitiva con opzioni —   Eng. competitive bid option   Si tratta di un prestito sindacato in cui le banche che presentano l offerta per la partecipazione al finanziamento si riservano il diritto di cessione totale o parziale della loro quota …   Glossario di economia e finanza

  • ConsensusDOCS — Type Limited liability company …   Wikipedia

  • David Miller (Canadian politician) — For other people named David Miller, see David Miller (disambiguation). David Raymond Miller David Miller launching ICT Toronto 63rd Mayor of Toronto In office …   Wikipedia

  • Resolution Trust Corporation — The Resolution Trust Corporation (RTC) was a United States Government owned asset management company charged with liquidating assets (primarily real estate related assets, including mortgage loans) that had been assets of savings and loan… …   Wikipedia

  • Halliburton — For other uses, see Haliburton (disambiguation). Halliburton Type Public Traded as NYSE:  …   Wikipedia

  • Heckler & Koch P7 — P7 Heckler Koch P7. Type Semi automatic pistol Place of origin …   Wikipedia

  • National Lottery (Ireland) — File:National Lottery Ireland .jpg The Corporate Logo from 2008 onwards. The National Lottery (Irish: An Crannchur Náisiúnta) is the state lottery of Ireland. It was founded when the Oireachtas passed the National Lottery Act, 1986 to support… …   Wikipedia

  • John G. McCaskey — Infobox person name= John Gruard McCaskey caption= John Gruard McCaskey in 1917 birth date= birth date|1874|7|3|mf=y birth place= Pittsburgh, Pennsylvania death date= death date and age|1924|1|12|1874|7|3|mf=y death place= Pittsburgh,… …   Wikipedia

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

  • Computers and Information Systems — ▪ 2009 Introduction Smartphone: The New Computer.       The market for the smartphone in reality a handheld computer for Web browsing, e mail, music, and video that was integrated with a cellular telephone continued to grow in 2008. According to… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.