Case Study Contingent Exposure Reporting: L/C & Swing Line Lending engage@tendelta.com Page | 1 Contingent Exposure Reporting: L/C & Swing Line Lending Mid- to Large-Sized Middle Market Syndicator Duration: 3+ months Overview When a lender in a syndicated lending structure issues a letter of credit or advances a swing line loan to a borrower, that lender becomes exposed to the rest of the syndicate lender group on a contingent basis. Since the financial crisis of 2008, understanding contingent exposures has become critical in managing risk. Though the client could identify existing contingent exposure for letters of credit issued or swing line loans advanced, it did not have a clear systematic view into its total potential contingent exposure (i.e. the total amount

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