D Question 25 Consider the following two syndication strategies for a $3.3 1 pts Structure A Number Underwritten individual Individual amount S/U Amount Lead Bank Allocation 1 $3,300 $300 Sub-Underwriters 0 Participants 20 $150 Structure B Number Underwritten individual Individual amount S/U Amount Allocation Lead Bank 1 $3,300 $660 $300 Sub-Underwriters 4 $660 $300 Participants 9 $200 Which of the following is not correct? The credit risk is higher with Structure B. The risks and rewards are the same for the underlying credit risk in either structure. The underwriting risk is higher with Structure A. The borrower would not care in terms of pricing about which structure the lead bank choomes to syndicate this loan. The borrower would prefer Structure B as it is more likely that the deal will close successfully, particularly if the borrower has relationships with the S/U banks