| The role of arranger on a Euro medium-term note (EMTN) programme is something of an oddity in the financial markets: banks which arrange programmes expend a great deal of time and resources, but usually don't charge a cent for the privilege. And, despite this, the arranger is often the poor relation in the programme. "If an issuer comes back from lunch and finds four messages waiting for him one from his arranger, two from his dealer group and one about a reverse enquiry deal the arranger will be the last one he contacts," says one banker. It is undeniable, though, that arranging a programme properly is essential for its success. "Whichever way you look at it, the role is important," says Martin Goldberg, executive director of fixed income at Lehman Brothers. "From the issuer's point of view, it's efficient and cuts out a great deal of hassle. For the dealers, an experienced arranger generally instils them with confidence because they know that someone with detailed knowledge of the markets is involved." Why, then, are so many leading investment banks keen to be arrangers? A key benefit for frequent arrangers is that the process helps them stay up to date with developments in the market. |