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Back-to-Back Commitment

What is 'Back-to-Back Commitment'

A commitment to make a second take-out loan that piggybacks another loan. With a back-to-back commitment, once the terms of the first loan are satisfied, it will be rolled into the second loan.

Explaining 'Back-to-Back Commitment'

The best example of a back-to-back commitment is when a bank makes a construction loan to build a house. Once the house has been built and a certificate of occupancy issued, the bank will make a new loan, probably a first mortgage loan, to take out the construction loan. The bank's commitment will specify the conditions that must be met in order for the commitment to fund the second loan to be valid.


Further Reading


Inter-day return behaviour for stocks quoted 'back-to-back'in Hong Kong and London
www.tandfonline.com [PDF]
… for different days of the week, may still be useful for investors with an established commitment to buy … In the trading of HK stocks 'back-to-back', between the close on dates t and t - 1 in … (1994) Seasonal pattern in volatility in Asian stock markets, Applied Financial Economics, 4, 61 …

The emerging patterns of power in corporate governance–back to the future in improving corporate decision makingThe emerging patterns of power in corporate governance–back to the future in improving corporate decision making
www.emerald.com [PDF]
… for different days of the week, may still be useful for investors with an established commitment to buy … In the trading of HK stocks 'back-to-back', between the close on dates t and t - 1 in … (1994) Seasonal pattern in volatility in Asian stock markets, Applied Financial Economics, 4, 61 …

Status of Gulf co-operation council (GCC) electricity grid system interconnectionStatus of Gulf co-operation council (GCC) electricity grid system interconnection
ieeexplore.ieee.org [PDF]
… for different days of the week, may still be useful for investors with an established commitment to buy … In the trading of HK stocks 'back-to-back', between the close on dates t and t - 1 in … (1994) Seasonal pattern in volatility in Asian stock markets, Applied Financial Economics, 4, 61 …

'Everything has a fucking value': Negative Dialectics in the Work of Back to Back Theatre'Everything has a fucking value': Negative Dialectics in the Work of Back to Back Theatre
www.tandfonline.com [PDF]
… for different days of the week, may still be useful for investors with an established commitment to buy … In the trading of HK stocks 'back-to-back', between the close on dates t and t - 1 in … (1994) Seasonal pattern in volatility in Asian stock markets, Applied Financial Economics, 4, 61 …

AC vs. HVDC Back to Back Interconnection cost benefit analysisAC vs. HVDC Back to Back Interconnection cost benefit analysis
ieeexplore.ieee.org [PDF]
… for different days of the week, may still be useful for investors with an established commitment to buy … In the trading of HK stocks 'back-to-back', between the close on dates t and t - 1 in … (1994) Seasonal pattern in volatility in Asian stock markets, Applied Financial Economics, 4, 61 …

Capital flight from sub‐Saharan Africa: linkages with external borrowing and policy optionsCapital flight from sub‐Saharan Africa: linkages with external borrowing and policy options
www.tandfonline.com [PDF]
… for different days of the week, may still be useful for investors with an established commitment to buy … In the trading of HK stocks 'back-to-back', between the close on dates t and t - 1 in … (1994) Seasonal pattern in volatility in Asian stock markets, Applied Financial Economics, 4, 61 …

Financial Crisis Fatigue? Politics behind Japan's Post-Global Financial Crisis Economic ContractionFinancial Crisis Fatigue? Politics behind Japan's Post-Global Financial Crisis Economic Contraction
www.cambridge.org [PDF]
… for different days of the week, may still be useful for investors with an established commitment to buy … In the trading of HK stocks 'back-to-back', between the close on dates t and t - 1 in … (1994) Seasonal pattern in volatility in Asian stock markets, Applied Financial Economics, 4, 61 …

Regional economic trendsRegional economic trends
search.proquest.com [PDF]
… for different days of the week, may still be useful for investors with an established commitment to buy … In the trading of HK stocks 'back-to-back', between the close on dates t and t - 1 in … (1994) Seasonal pattern in volatility in Asian stock markets, Applied Financial Economics, 4, 61 …



Q&A About Back-to-Back Commitment


What is a back-to-back commitment?

A back-to-back commitment is when a bank makes a second loan that piggybacks another loan.

How do you make sure that the first loan will be paid off before funding the second one?

The terms of the first loan must be satisfied before funding the second one.

Why would you use this type of lending arrangement?

To avoid tying up capital in one large loan.

What does the best example of a back-to-back commitment involve?

The best example of a back to back commitment involves making a construction loan to build a house and then making another loan after the house has been built.