hard · Debt Capital Markets primary-issuance-syndication
In an 'Underwriting Syndicate', the 'Selling Concession' is:
- The discount offered to large institutional investors to encourage them to buy a new issue.
- The penalty a bank must pay if it fails to sell its allotted share of the bond issue.
- The fee paid to the 'Active Bookrunner' for managing the legal documentation and the roadshow.
- The portion of the gross spread paid to the specific bank that successfully places the bonds with an investor.
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