Are syndicated bank loans securities? & Qualcomm

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Today, we will learn more about:

1. Are syndicated bank loans securities?

2. Business Breakdown - Qualcomm

Should syndicated bank loans should be treated as securities?

Let’s start from the basics: syndicated bank loans are a form of financing offered by a group of lenders who work together to provide capital for a single borrower. Syndicated loans are common when a project requires too large a loan for a single lender.

A 2020 case that held that syndicated loans as an asset class are not securities for purposes of the securities laws is making a return to the spotlight as an appeal threatens to upend the decision.

In Kirschner v. JPMorgan Chase Bank, the lower court held that the loans in question were not securities and thus were not subject to state and federal securities laws. While the decision offered relief within the commercial lending industry, in October 2021, the plaintiff filed an appeal to the Second Circuit to have the decision overturned.

Background

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