medium · Debt Capital Markets primary-issuance-syndication
In an 'Underwriting Syndicate', the 'Selling Concession' is:
- The price discount offered to large institutional buyers to entice them into purchasing a brand-new issue.
- The financial penalty an underwriting bank must pay whenever it fails to place its full allotted share of the issue.
- The fee paid to the active bookrunner for managing the legal documentation, the roadshow logistics, and investor outreach work.
- The portion of the gross spread paid to the specific bank that successfully places the bonds with an investor.
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