INDUSTRIAL-STRUCTURE IN THE EUROCREDIT UNDERWRITING MARKET

While the complexity of underwriting syndicates is well-known there ha s been very little empirical analysis of syndicate structure. The shor t-term Eurocredit market is a promising market for the analysis of ind ustrial structure because underwriting syndicates generally come in a two-tier structure. The structures of syndicates in this market are an alyzed here empirically. Our evidence suggests that the lead managers in these syndicates seem to be recruited primarily for paycosts of ris k bearing and sharing, while the regular managers appear to be recruit ed primarily for the purpose of dealing with expanded underwriting dis tribution, risks held constant. Contract parameters that affect syndic ate size and structure are examined in detail for various instruments. (JEL G20). Copyright (C) 1996 Elsevier Science Ltd