Negotiated underwriting

Negotiated underwriting

A securities offering process in which the purchase price paid to the issuer and the public offering price are determined by negotiation rather than through competitive bidding.

Negotiated Underwriting

A process in which an issuer of securities approaches an underwriting firm to facilitate a new issue. The issuer and the underwriter negotiate a purchase price, which is the price for which the underwriter buys the new issue, and an offering price, the price at which the underwriter sells the issue to investors. The difference between these forms the underwriter's profit. In negotiated underwriting, these discussions occur on an individual basis between the issuer and the underwriting firm. It contrasts with competitive bidding, whereby a number of underwriters make offers to the issuer, who picks the most favorable offer.
References in periodicals archive ?
Massey has 26 years of investment experience, including broad experience in trading, competitive and negotiated underwriting and distribution, as well as management and compliance supervision.
Anderson will help to develop Cantor Fitzgerald's public finance efforts, and expand its municipal underwriting, sales and trading business, specifically in negotiated underwriting.
The Trust may sell the bonds by means of a competitive bidding process using ParityA or by means of a negotiated underwriting.
Yet, when the California Debt Advisory Commission (CDAC) decided to take a closer look at the competitive versus negotiated underwriting debate in late 1991, the commission and its staff were not fully aware of the pitched battle it would encounter between proponents of each method of sale.
Murphy has broad experience in both competitive and negotiated underwriting across the municipal credit spectrum
She was also the National Manager of the underwriting department at Dean Witter Reynolds and served as Manager of the negotiated underwriting desk at Kidder Peabody (which was eventually acquired by Paine Webber).
Competitive bidding is generally believed to lower the overall cost of selling general obligation bonds, whereas the benefit of negotiated underwriting is that it may permit municipalities to fund needed projects that otherwise might not receive financing.
With 20 offices throughout the nation, the firm has access to over 450 institutional buyers and is ranked 8th nationally and 5th in California for senior managed negotiated underwriting.
Previously, Doneff was responsible for the firm's competitive underwriting as well as being involved in negotiated underwriting.
14, 2007 in a negotiated underwriting through Butler Wick & Co.
Bogorowski has twenty years of capital markets experience and previously oversaw Shearson Lehman's Mid-Atlantic Retail Operation, which included all competitive and negotiated underwriting and trading activities.
Earlier in her career she negotiated underwriting agreements for major energy companies.
Full browser ?