Do underwriters short-change corporations issuing bonds?

• Main Authors: GOH, Jeremy C., YANG, Lisa (Zongfei)
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2024
• Subjects: Underwriters; bonds; market prices; Finance and Financial Management; Portfolio and Security Analysis
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/7372; https://ink.library.smu.edu.sg/context/lkcsb_research/article/8371/viewcontent/do_underwriters_short_change_corporations_issuing_bonds_pvoa.pdf
• Institution: Singapore Management University

We confirm prior evidence that bonds on average are offered at prices below their immediate post-offer secondary market prices. However, in cases where banks lead–manage their own bond offerings the underpricing is significantly less as compared with other non-self-marketed offerings. These findings...