It did not take long for the bond syndication process to revert to type. A year ago selling new issues was dangerous. The damage to an underwriter’s reputation from failing might be serious, although not as serious as for the prospective borrower, which would then need to fend off accusations that it had no access to the capital markets.
Failure to deliver a deal was not an option, which meant that syndication was reminiscent of days long gone. Cooperation between bond managers was crucial to success, as was persuading a number of core investors to agree to purchase the bonds before a deal’s official launch. Proper...
