| Tekijä: | Glazer, A. S. |
| Otsikko: | Acquisition bridge financing by investment banks. |
| Lehti: | Business Horizons
1989 : SEP-OCT, VOL. 32:5, p. 49-53 |
| Asiasana: | INVESTMENT BANKS FINANCING MERGERS LOANS |
| Kieli: | eng |
| Tiivistelmä: | Bridge financing has become a popular source of revenue for investment bankers, but this form of financing poses risk for both company and bank, and possible conflicts of interest. Buyers view these loans as a quick, flexible way to satisfy sellers that financing is in place. Investment bankers view bridge lending as an extremely profitable way to employ capital and as a device to attract and retain clients. The dangers in bridge lending is that having large amounts of capital tied up until the bridge loan is refinanced exposes the investment banker to many risks: the credit risk of the borrower, the subsequent refinancing of the loan, and the reduction of liquidity. |
SCIMA