It's like the animal that walks like a duck, and quacks like a duck, but it's not a duck. In the long run, we're all dead. John Maynard Keynes
I presume you know what an underwriter does? My understanding is that an underwriting bank will only end up as a creditor/investor if they don't manage to find other creditors/investors willing to put up existing credit=money.
Would you characterise the function of debt underwriting by a bank as credit service provision, or as credit creation/ intermediation?
The fact that credit intermediation is increasingly fucked is my point, and no amount of snark will make that any less the case. "Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky
So it's both a credit service and credit creation. The syndication is just shuffling around of money, whether it exists or needs to be created by other entities (and the part sold down by the underwriter may itslef be destroyed of shuffled elsewhere).
The only distinction between bank debt and capital market instruments is that bank debt is syndicated to a smaller pool of potential participants, and is less easy to trade. But fundamentally it's not very different. In the long run, we're all dead. John Maynard Keynes
Hallelujah. =) Peak oil is not an energy crisis. It is a liquid fuel crisis.
