Bond Issuance: Syndication

Bond Issuance: Syndication

Intuition Publishing Pty Ltd
Updated Sep 23, 2020

The underwriting of a large bond can represent a substantial risk to many banks. To reduce their risk exposure, banks will invite other banks to participate in the bond issue. They set up what is known as a syndicate. We examine the typical structure of a syndicate, how banks strive to get the best deal for the issuer, and the fees they charge for their efforts.