Series 52: 3.2.2.2. Forming The Syndicate

3.2.2.2. Forming the Syndicate

To get the broadest possible view of the market and reach the maximum number of prospective investors, an interested underwriter will typically form a syndicate prior to submitting a competitive bid. Once the team is selected, the lead underwriter will draft a syndicate letter. This letter describes:

• The obligations of each member

• The share of the members’ participation in the underwriting

• How bond orders will be handled

It also specifies the amount of the bonds to be issued and their terms