Asymmetric information among lending syndicate members and the value of repeat lending

► Using novel proxies we examine the effect of information asymmetries among syndicate members on loan prices. ► When participant banks have information inferiority in comparison to arrangers they require higher loan spreads to compensate for possible arranger opportunistic behaviour. ► Repeat lending to the same borrower amplifies participant banks ability to assess credit risk and subsequent reduction in information asymmetries leads to lower loan spreads. ► These effects are amplified when borrowers are more opaque.