Loan Market Association has published the Fund Finance Glossary of Terms. With the rapid growth in the market, it’s important to take a step back and be clear as to what we mean when we use certain terms in relation to fund finance.

Different terms are often used to describe the same thing (think sublines and capital calls) and there can also be instances of parties speaking at cross-purposes (think recyclable and recallable capital). This can create inefficiencies in practice.

This 𝗚𝗹𝗼𝘀𝘀𝗮𝗿𝘆 𝗿𝗲𝘀𝗽𝗼𝗻𝗱𝘀 𝗱𝗶𝗿𝗲𝗰𝘁𝗹𝘆 𝘁𝗼 𝗿𝗲𝗾𝘂𝗲𝘀𝘁𝘀 𝗳𝗿𝗼𝗺 𝗟𝗠𝗔 𝗙𝘂𝗻𝗱 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 𝗪𝗼𝗿𝗸𝗶𝗻𝗴 𝗣𝗮𝗿𝘁𝗶𝗲𝘀 𝗮𝗻𝗱 𝘀𝗲𝗲𝗸𝘀 𝘁𝗼 𝗽𝗿𝗼𝗺𝗼𝘁𝗲 𝘁𝗵𝗲 𝗱𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁, 𝗮𝗻𝗱 𝘂𝘀𝗲, 𝗼𝗳 𝗮 𝗰𝗼𝗺𝗺𝗼𝗻 𝗹𝗮𝗻𝗴𝘂𝗮𝗴𝗲 𝘀𝘂𝗿𝗿𝗼𝘂𝗻𝗱𝗶𝗻𝗴 𝗳𝘂𝗻𝗱 𝗳𝗶𝗻𝗮𝗻𝗰𝗲 – this is designed to improve efficiency in the market by setting a baseline for discussions. The Glossary is a high-level one, is not comprehensive and is not intended to be a technical legal glossary.

Th glossary is accessible to download here.