Other
Underwriter Choice When the Issuer Is an Underwriter
2018
Abstract
This paper examines the debt underwriting relationship for banks. Publicly-traded investment and commercial banks (“banks”) are unique as they are the only firms capable of underwriting their own securities. In nearly 30% of their debt issuances, banks hire another underwriter and do so extensively across bank size, quality, and type. The decision to use another underwriter is related to expertise, information sharing, as well as our newly developed bank-specific (distribution networks, underwriting capacity, and ranking) motivations. The decision to use another underwriter, while likely optimal from the issuer's perspective, is costly and nearly doubles the per-deal level of underwriting fees
Metrics
15 Record Views
Details
- Title
- Underwriter Choice When the Issuer Is an Underwriter
- Creators
- David Becher - Drexel University
- Publisher
- SSRN
- Resource Type
- Other
- Language
- English
- Academic Unit
- Bennett S. LeBow College of Business; Finance; Drexel University
- Other Identifier
- 991019551686204721