The Overbond Academy will help you understand fixed income market fundamentals
Corporations and governments seeking capital to fund existing operations, invest in new projects, finance M&A activities, or refinance existing debt obligations will issue new bonds in the primary bond market. Dealers provide issuers with core services such as funding strategy, market updates, investor marketing, ratings advisory, deal execution, and deal documentation. Issuers must consider the various market (e.g. credit, inflation) and business risks (e.g. liquidity) associated with issuing additional debt.
There are multiple forms of transactions that issuers can generally choose from:
Dealers are responsible for managing and filing legal documentation throughout the debt issuance process. Documentation is kept to support issuer and dealer decision points throughout the issuance process. They include offering memorandums, prospectuses, term sheets, and indentures. Dealers ensure that the new issue is marketed and distributed to investors in different jurisdictions while complying with local filing and disclosure requirements.
By working with other key stakeholders such as dealers, auditors and legal counsels, issuers must consider the following to execute a bond transaction: