How to issue bonds?

24th Feb 2011 by admint

If a corporation or government agency is thinking of issuing bonds, they go to an investment banker for advice on the marketplace, possible issuing price and other factors. The Investment banker also serves as the Underwriter of the bond. It prepares the necessary documents needed for Securities and Exchange Commission filing, helps set a price for the bond to be issued, and is the lead in forming an underwriting group also known as purchase group or syndicate. This purchasing group or syndicate will then spread the risk of the new issue to a number of investors or participating investment bankers and would lead to selling these new bonds. The investment banker would hold a meeting to sell the bonds. When investors decides to buy bonds, the investors would send it to the investment bank and the investment bank would then transfer funds to the corporation who issued the bonds.

This answer is the subjective opinion of the writer and not of FinancialAdvisory.com