medium · Debt Capital Markets
What is the 'New Issue Concession' (NIC)?
- The difference between the yield of a new bond at launch and the estimated secondary-market fair value of the same credit.
- The total fee paid to the underwriting syndicate for managing the deal.
- A contractual reduction in the coupon rate if the company's credit rating improves.
- The discount offered to retail investors to encourage participation in a sovereign auction.
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More Debt Capital Markets practice
- In the context of Debt Capital Markets, what is a leverage-based margin ratchet?
- Which officer of a borrower is typically responsible for signing the compliance certificat
- Why is the Administrative Agent's role important for the margin ratchet?
- If a company has a leverage-based pricing grid and SOFR rises significantly while leverage
- What is meant by the 'bond floor' in the context of yield analysis?
- For a bond trading at a discount (below par), which yield measure is typically the same as
- What is a 'call schedule' for a corporate bond?
- If a bond's Yield to Worst is equal to its Yield to Maturity, what can we likely conclude