The Roles of Issuer, Placement Agent and Underwriter Member - PowerPoint PPT Presentation

The Roles of Issuer, Placement Agent and Underwriter Member NYSE, SIPC August 3, 2007

The Role of Issuer � Determining Method of Sale Determining Method of Sale – – � Competitive or Negotiated Competitive or Negotiated � Setting Policy Setting Policy � � Acting as Conduit or Credit Enhancer Acting as Conduit or Credit Enhancer � 2 August 3, 2007 Member NYSE, SIPC

Competitive vs. Negotiated � Issue Size Issue Size � � Market Conditions Market Conditions � � Type of Interest Rate Type of Interest Rate – – Fixed or Fixed or � Variable? Variable? � Nature of Obligation and Structure Nature of Obligation and Structure � 3 August 3, 2007 Member NYSE, SIPC

Competitive Issues � High Credit Quality High Credit Quality � � Public Purpose Public Purpose � � Assistance of Financial Advisor or Assistance of Financial Advisor or � Strong Staff Strong Staff 4 August 3, 2007 Member NYSE, SIPC

Negotiated Issues � Issuing an RFP Issuing an RFP � � Negotiating Directly with an Negotiating Directly with an � Underwriter Underwriter 5 August 3, 2007 Member NYSE, SIPC

Underwriting vs. Private Placement � Private Placement is “Best Efforts” Private Placement is “Best Efforts” � � Underwriting is Firm Commitment to Underwriting is Firm Commitment to � Buy Buy � Complexity and Nature of Obligation Complexity and Nature of Obligation � 6 August 3, 2007 Member NYSE, SIPC