![]() ![]() In a typical HY deal with 200 bps in fees, the bookrunner will split at least 150bps with the 4-5 other comanagers just getting a small piece of the 50 bps. Pretty much every HY issue has been best efforts meaning the bookrunners (lead and one to 3 co-books) share the majority of the execution and diligence with several co-managers helping to syndicate. I am pretty sure this only applies to I-Grade deals these days. Every bank wants to be the lead manager, because that means they get the best price for themselves and their customers, meaning fatter comissions. ![]() They are basically in charge of "keeping the book" which simply means keeping record of who bought shares for how much. The bookrunner is usually the lead manager but doesn't have to be. The lead manager makes all the decisions about price, timing, how to run the roadshow, what type of auction they will pursue, who gets stock, etc. Its basically the amount they can sell to the institutional public above the price they underwrote it for for the company. They don't want clients at other banks knowing this, but most of the profits from the deal can be gotten by what they call "the skim" (at least at my banks). But they are kind of along for the ride.įuriousgeorge86:Being the lead manager in a deal means that you are structuring the deal. Usually to get to the most customers there are as many as twelve other syndicate banks, who buy blocks of stock to sell to their clients for higher prices than they bought it for. Being the lead manager in a deal means that you are structuring the deal. Financial Institutions Role: Joint Principal Adviser/Joint Lead Arranger/Lead Manager SABAH DEVELOPMENT BANK RM1.0 Billion CP/MTN Programme Role: Joint. ![]()
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