Complete the passage below by selecting the most appropriate terms from the following list: floating charge, syndicated, commercial paper, warehouse receipt, arranger, collateral, commitment fee, line of credit, medium-term notes, collateralized loan obligations (CLOs).

Companies with fluctuating capital needs often arrange a ________ with their bank. This is relatively expensive because companies need to pay a ________ on any unused amount.

Secured short-term loans are sometimes covered by a ________ on all receivables and inventory. Generally, however, the borrower pledges specific assets as ________ . For example, if goods are stored in a warehouse, an independent warehouse company may issue a ________ to the lender. The goods can then only be released with the lender’s consent.

Very large bank loans are often ________ . In this case the lead bank acts as the ________ and will parcel out the loan among a group of banks.

Banks also often sell loans. Sometimes they put together a portfolio of loans and sell separate slices (or tranches). These are known as ________ .

Banks are not the only source of short-term debt. Many large companies issue their own unsecured debt directly to investors, often on a regular basis. If the maturity is less than nine months, this debt is generally known as ________ . Companies also make regular issues of longer-term debt to investors. These are called ________ .

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