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Education_Series_IconUnderstanding Asset Classes

Are Syndicated Loans Right for Your Organization?

Asset Classes: Syndicated LoansSyndicated loans (also known as bank loans) are traditionally thought of as uncommon investments. But according to Clearwater’s 2014 Insurance Industry Benchmark Survey, 76% of insurers are now investing in syndicated loans, and another 24% have plans to add syndicated loans to their portfolio in the future.

However, syndicated loans do come with accounting management challenges. Data availability, interest payment lags, inaccurate accruals, valuation complications, and investment solution system limitations have traditionally made most investment accountants wary of syndicated loans.

With a discussion of syndicated loans’ structure, processes, covenants, and more, this paper is a vital resource in helping insurance investment and accounting teams better understand syndicated loans.

Syndicated Loans is part of Clearwater's "Understanding Asset Classes" series. This series explores the growing popularity of complex asset classes, and best practices for CFOs, CIOs, and accounting professionals at U.S. insurance companies to manage complex assets' accounting challenges.

This material is for informational purposes only. The information in this paper should not be construed as legal, financial, investment, or tax advice, and any questions regarding the reader’s individual circumstances should be addressed to that reader’s lawyer, accountant, or investment advisor.