Bank of America waives loan assignment fees

By Sara Rosenberg

New York, Jan. 31 - Bank of America has decided to waive loan assignment fees for all lenders and other agents trading a Bank of America-agented syndicated loan, effective immediately, according to a news release.

"Bank of America will be able to make tighter markets and deeper markets, which is good for liquidity and good for investors," Ed Hamilton, head of secondary par loan sales and trading, told Prospect News.

The only case in which these fees won't be waived is when a loan is traded through an agent that does not waive assignment fees for the benefit of Bank of America.

The average assignment fee ranges from around $3,000 to $3,500. Bank of America lowered its assignment fees to $2,500 from $3,500 about a year ago.

Presumably, any lost revenues from assignment fees will be replaced with additional trading volume.

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