Course 105: The Process of Issuing Bonds
Investment Bankers Facilitate the Issuing of Bonds
In this course
1 Introduction
2 Investment Bankers Facilitate the Issuing of Bonds
3 Underwriting Bond Issues
4 Investment Bankers Locate Bond Buyers
5 Role of Investment Banker

If you needed to borrow money, you would probably go to your banker. Governments and businesses do the same thing. They look to the investment banker for their borrowing needs.

An investment banker serves as an intermediary between the organization issuing the securities and the investors.

When a corporation or government agency is considering issuing bonds--or stocks, for that matter--it usually contacts an investment banker for advice on the marketplace, the possible issuing price, and other factors. An investment banker is a firm that serves as an intermediary between the organization issuing the securities and the investors who purchase them. The bond issuer does not itself sell the bonds.

Investment bankers often begin assisting the corporation or government agency well before the bonds are actually issued. The organization's relationship with the investment banker may continue after the bonds have been issued, and the investment banker may sit on the corporation's board of directors.

Corporations and government units realize that investment banks possess knowledge and expertise they need to reach investors. Investment bankers generally have an excellent understanding of capital markets, relevant government regulations, and other factors affecting a bond issue.

Many investment bankers also offer broker-dealer services and related financial services.

Next: Underwriting Bond Issues >>


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