Capital Markets (ECM / DCM)
What does it mean for a bond deal to be 'oversubscribed,' and how does the syndicate use that?
Model answer
Oversubscribed means investor orders exceed the bonds available — e.g., a $500m deal with $2bn of orders is '4x covered'. The syndicate uses oversubscription two ways: (1) to TIGHTEN pricing — strong…
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