Equity capital markets bankers agree that accelerated transactions and bought deals are here to stay. Such deals dominated ECM issuance for most of 2003, with fully bought deals accounting for 54% of all block trades. This, however, obscures the fact that many accelerated block trades that are not officially bought deals have aggressive backstop arrangements that make them little different to those officially classed as risk trades. Clients in need of cash like them because the discounts are tighter, sometimes substantially so.
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