Syndicated Loan

See: Syndicate. See: Reinsurance.

When a loan is syndicated, it means that the risk is shared among other lenders. So Bank A is the primary lender of, say, $30 million for a new hair replacement business for men called It's Just Hair. But they're nervous about the loan, so they tickle Bank B, C, and D on the shoulder, each of whom underwrites $5 million of loans, such that Bank A has syndicated $15 million, cutting their total loan exposure in half to $15 million.