medium · Debt Capital Markets pricing-yields-curve
A syndicate desk suggests a 'pricing flex' that increases the OID from 99.50 to 98.50 while keeping the coupon the same.
What is the desk attempting to do?
- Lower the total amount of debt the issuer must repay.
- Reduce the periodic cash interest burden of the issuer.
- Increase the yield to maturity to attract more investors.
- Decrease the yield to maturity to save the issuer money.
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