--%>
Assignment Help - homework help

Explain procedure of bringing new international bond issue

Explain the procedure of bringing a new international bond issue to market.
A borrower desiring to increase funds through issuing Eurobonds to the investing public will contact an investment banker and ask it to serve as lead manager of an underwriting syndicate which will bring the bonds to market. Usually the lead manager will invite other banks to make a managing group to help negotiate terms along with the borrower, ascertain market conditions, and manage the issuance.  The managing group, along with other banks, will serve as underwriters for the issue that means they will commit their own capital to purchase the issue from the borrower at a discount from the issue price.  Mostly underwriters, along with other banks, will be part of a selling group which sells the bonds to the investing public. The several members of the underwriting syndicate receive a portion of the spread (typically in the range of 2 to 2.5 % of the issue size), based upon the number and sort of functions they perform. The lead manager attains the full spread, and a bank serving as just a member of the selling group receives a smaller portion.

   Related Questions in Financial Management

  • Q : Criticize flexible exchange rate regime

    Criticize the flexible exchange rate regime from the point of view of the proponents of the fixed exchange rate regime. If exchange rates are randomly fluctuating, that may discourage international trade and suppor

    		•
  • Q : Find QSD and set up

    Company A is a AAA-rated firm wanting to issue five-year FRNs. It determines that it can issue FRNs at six-month LIBOR + 1/8 percent or at the six-month Treasury-bill rate + ½ percent. Specified its asset structure, LIBOR is the preferred index. Comp

    		•
  • Q : Cross-list equity shares on more than

    Explain any benefits you can think of for any company to cross-list its equity shares on more than one national exchange?A MNC that has a product market presence or manufacturing facilities in many countries may cross-list its shares on the exch

    		•
  • Q : What is Co-integration What is

    What is Co-integration?

    		•
  • Q : How is the risk into portfolio measured

    How is the risk into portfolio measured in Crash Metrics?

    		•
  • Q : Trustworthy collateral from the lenders

    What is trustworthy collateral from the lender's perspective?  Explain whether accounts receivable and inventory are trustworthy collateral.

    		•
  • Q : Explain normal distribution model

    Explain normal distribution model proposed by Louis Bachelier.

    		•
  • Q : Matching loan and deposit maturities

    Good fellow national bank decided to compete with a savings and loan by offering 30 year fixed rate mortgage loans at 8% annual interest. It plans to obtain the money got the loans by selling one year 6% CD to it's depositors. During first year of operation, good fellows sold it's depositors 1,000,0

    		•
  • Q : Fm Explain the factors that responsible

    Explain the factors that responsible for the recent surge in international portfolio investment (IPI)?

    		•
  • Q : Estimate the 30- day- 90- day

    Normal 0 false false