What is a re offer yield?
Reoffering yield. In a purchase and sale, the yield to maturity at which an underwriter offers to sell bonds to investors.
What is a re offer?
Definition of reoffer transitive verb. : to offer (a security issue) for public sale.
What is the reoffer yield on bonds?
Reoffering Yield means, with respect to a Capital Appreciation Bond, the yield that is received by the original investor, based on the initial reoffering price, assuming that such Capital Appreciation Bond is held to maturity. The Reoffering Yield may be different from the Accretion Rate.
What is a bond reoffering?
Key Takeaways. The re-offer price is that price point at which an investment bank offers bonds or other securities that it has itself purchased directly from an issuer to the public. Banks and other securities underwriters may agree to buy up all of an issuer’s offering, usually at a bulk discount to face value.
Is yield the same as coupon rate?
A bond’s yield is the rate of return the bond generates. A bond’s coupon rate is the rate of interest that the bond pays annually.
Is reoffer a word?
Reoffer definition An offer that has been made before.
Is re offer a word?
An offer that has been made before.
What does Name of offeree mean?
Legal Definition of offeree : one to whom an offer is made a unilateral contract consists of a promise on the part of the offeror and performance of the requisite terms by the offeree — Kloss v.
What is a bought deal financing?
A bought deal is a securities offering in which an investment bank commits to buy the entire offering from the client company. A bought deal eliminates the issuing company’s financing risk, ensuring that it will raise the intended amount.
How do bond underwriters make money?
In a new offering of municipal bonds, underwriters make money from the “underwriting spread.” The underwriting spread (underwriter spread or underwriting fee) is the difference between the price at which a bond issue is bought (the purchase paid) and the price at which the bonds are sold to investors.
Why is yield higher than coupon?
If an investor purchases a bond at par or face value, the yield to maturity is equal to its coupon rate. If the investor purchases the bond at a discount, its yield to maturity will be higher than its coupon rate. A bond purchased at a premium will have a yield to maturity that is lower than its coupon rate.