allotment
A method of distributing previously unissued shares in a limited company in exchange for a contribution of capital. An application for such shares will often be made after the issue of a prospectus ...
block sale
1 A trade in a specific security (or portfolio of securities) which is larger than normal for the particular market, given the ruling market conditions (cf lot).2 It can ...
breaking the syndicate
The termination of the underwriting agreement or purchase and sale agreement. Normally, the agreement will stipulate when this would occur, but in securities underwriting early termination by mutual ...
Bundesbond
(Germany).Federal republic debt issues. The most common ones, known as bunds have an original maturity of ten-years, although there have been some longer-term issues and bubls. Formerly offered to ...
eurobond
A bond issued in a Eurocurrency, that is, a European currency held outside its country of origin. Eurobonds are issued in bearer form, and the interest payments are free of withholding taxes. They ...
fixed price reoffer
(FPR).A type of underwriting agreement where the syndicate agrees to offer securities at a price set by the lead manager (in consultation with the syndicate) until such time as all the securities are ...
global note issuance facility
(GNIF).Permits the issue of commercial paper in both the US domestic market and in the euronote market at the same time, and is usually underwritten by a syndicate of ...
guaranteed bond
A bond in which payments of principal or interest are guaranteed by a third party other than the issuer. In the USA this is often a state.
in syndication
In the process of being underwritten. For loans, this involves the lead manager or arranger soliciting other banks to participate in the transaction by agreeing to lend a fraction of ...
Lloyd's
A corporation of underwriters (Lloyd's underwriters) and insurance brokers ( Lloyd's brokers) that developed from a coffee shop in Tavern Street in the City of London in 1689. It takes its name from ...
loss ratio
The total of the claims paid out by an insurance company, underwriting syndicate, etc., expressed as a percentage of the amount of premiums coming in during the same period. For example, if claims ...
merchant bank
A bank dealing mainly with other firms rather than the general public. Merchant banks engage in a variety of specialist activities, including: financing foreign trade by accepting bills of exchange; ...
name
1 Colloquial term for a counterparty (cf. marking name; street name). Hence a trader might say to a broker intermediary when offered a trade, ‘I'm full up on the name’ ...
pool
1 The aggregation of a number of instruments into a single security, usually seen in the mortgage market. See asset securitization.2 Can also be used for mutual investment funds ...
public offering
1 (USA) The sale by a firm of registered securities to the public. Under US securities laws all securities offered to the public must be registered with the Securities and ...
reinsurance to close
(RITC)The practice of syndicates at Lloyd's of London by which future liabilities for policies are carried over to a new year. Syndicates of investors at Lloyd's have to renew their legal status ...
selling group
Members of a new issue syndicate who are neither managers, underwriters, nor sub-underwriters in the issue but who are involved in the placement due to their ability to distribute. They ...
sub-underwriter
A member of a new issue syndicate who agrees to buy a certain proportion of the issue from the managers should the issue be under-subscribed. He receives an underwriting fee ...
