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Currents

Ep117: Commercial Bank, Term Loan B and Project Bond Market

Aug 24, 2020
Exploring differences between commercial bank, term loan B, and project bond lending markets; considerations for debt financing strategies for various project types; analysis of market trends and participation during COVID crisis; navigating credit analysis in renewable energy projects; predictions for World Series winner and hopes for vaccine effectiveness.
26:45

Podcast summary created with Snipd AI

Quick takeaways

  • Different markets like bank, bond, and term loan B cater to diverse borrower needs and risk tolerances.
  • Project financing choices vary based on project stage, with bank market preferred for flexibility and cost efficiency, and bonds for stable cash flows.

Deep dives

Overview of Different Markets for Borrowing Money

Three major markets for borrowers to obtain money for projects are discussed: the bank market, which offers flexible and cheap borrowing but limited leverage; the bond market, providing long-term fixed-rate funding up to 20-25 years; and the Turnwell B market, suitable for higher leverage with loans traded like stock. Each market caters to specific borrower needs and risk tolerances.

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