easy · Debt Capital Markets primary-issuance-syndication
What is the result of a 'bought deal' in the primary market?
- The whole transaction is automatically cancelled unless the order book reaches 2x oversubscription.
- The underwriting bank buys the entire issue from the company at a fixed price before selling to investors.
- The issuing company itself retains the market risk that the bonds cannot be placed at the agreed target price.
- The new bonds are distributed exclusively to retail investors through a regulated digital subscription platform online.
Sign up free to see the explanation and track your rank →
More Debt Capital Markets primary-issuance-syndication practice
- The 'new-issue concession' refers to:
- What is the 'winner's curse' in the context of bond auctions (a concept related to market
- What is a 'bridge loan'?
- Which component of the 'Gross Spread' (underwriting fee) usually rewards the specific bank
- If a company buys a machine on January 1, by what date must it typically incur the debt an
- If a company has multiple bond issues outstanding, each with its own builder basket, which
- Which of the following scenarios describes a 'legitimate' non-recurring add-back for a cre
- A DCM banker advises an issuer that its new deal will likely… — What does this term mean i