Quality Syndicated Bank Loans Data.
Overview: DIH’s syndicated bank loans data includes evaluated prices on global investment-grade and high-yield loans.
Coverage: We currently cover approximately 4,000 syndicated bank loans from around the world, and we continue to expand our coverage.
History: Most of our data goes back as far as 2011.
Updates: We update our data daily.
Delivery: You can receive our data in bulk files via download, S3 to S3, or on-demand via API.
Pricing: Several inputs go into the pricing for our data. For example, do want data for all available instruments, or a subset? How much history do you want? Do you want updates going forward? Contact us to learn more.
Coverage & Accuracy Are Why Firms Choose DIH.
The syndicated bank loan market has become very active in recent years. Groups of lenders (syndicates) wish to spread risk while participating in financial opportunities that are too large for them to do by themselves. Borrowers may include a corporation, large project, or sovereign government who needs a very large amount of financing.
Institutional investors use DIH’s syndicated bank loans data to determine the fair value of these securities that are traded over-the-counter. Firms also use our syndicated bank loans data as benchmarks for comparison and defensibility.
There are two reasons institutional investors rely upon DIH’s syndicated bank loans data:
Market Coverage – firms like that our universe of loans for which we provide data closely matches the loans in their portfolio and target universe.
Accuracy — the accuracy of our evaluated prices versus actual transaction prices is critical to our clients.
This is why so many institutional investors choose DIH’s syndicated bank loans data.
How We Build Our Syndicated Bank Loans Data.
A quick review of syndicated loans may be helpful…
A syndicated loan is financing offered by a group of lenders (a syndicate) who have chosen to work together to provide funds to a single borrower. The borrower is typically a corporation, a large project, or a sovereign government. The lenders are banks, pension funds, hedge funds, or other financial firms. The terms of the loan can involve a fixed amount of funds, a credit line, or a combination of the two.
Borrowers turn to syndicated loans when they require too large a loan for a single lender to make alone. Such loans are also used when a project needs a specialized lender with expertise in a specific asset class. For example, leveraged buyouts (LBOs) often use syndicated bank loans to fund large corporate takeovers.
Lenders like syndicated loans because they can spread the risk of the borrower defaulting on the loan across all the lenders. Also, syndicated loans allow a lender to take part in financial opportunities that may be too large for them to tackle on their own.
With syndicated loans, there is usually a lead lender who puts up more capital. The lead lender may also perform other tasks, like managing the distribution of cash flows to all the syndicate’s members.
As for the terms of syndicated loans, often such loans are made on a best-efforts basis, which means that if enough investors can’t be found, the amount the borrower receives is lower than originally anticipated. Interest rates on syndicated bank loans can be fixed or floating, based on a benchmark interest rate.
Syndicated loans can also be split into tranches for banks that fund standard revolving credit lines and institutional investors that fund fixed-rate term loans. So for example, a syndicated loan may encompass a five-year term loan and a revolving credit line so the borrower can pay down the balance and borrow again.
OUR PRICING METHODOLOGY
DIH’s syndicated bank loan data is built using a proprietary parsing technology to capture observable prices on global investment grade and high yield loans. Indicative prices are parsed from emails sent from the sell-side to the buy-side. Prices are organized based on issuer and tranche and then cleaned to remove outliers or stale prices. An average is then formed. If observable pricing information from the lead syndicate bank is available, these prices may be weighted more heavily when calculating the average.
These data points are used to calculate daily composite prices, including new issues and refinancings. We also include reference data about the loans.
Who Can Benefit from DIH’s Syndicated Bank Loans Data?
A variety of financial institutions use our syndicated bank loans data to fuel their workflows, including:
- Investment banks
- Hedge funds (systematic & non-systematic)
- Asset managers
Such firms utilize our data in various ways, especially in their research and risk management departments.
How Firms Use Our Data.
Financial institutions use our data in many ways, but some common uses are:
- Lenders use our data to assess the creditworthiness of borrowers.
- Fund managers use our data to better understand the default risk of companies in their portfolios.
- Firms use our data to determine the quality of other pricing sources.
Flexible Updates & Data Delivery.
Our syndicated bank loans data is updated on a daily basis.
You may customize our syndicated bank loans data to best suit your needs. For example, request data on all available instruments or provide a custom list.
We offer several ways to access our syndicated bank loans data:
Bulk File Download – For most of our clients, downloading our data in bulk files is most convenient. We deliver files in .CSV format via download or S3 to S3.
API – Some use cases are better suited for on-demand delivery of data via an API.