3.2.2.2. Forming the Syndicate
To get the broadest possible view of the market and reach the maximum number of prospective investors, an interested underwriter will typically form a syndicate prior to submitting a competitive bid. Once the team is selected, the lead underwriter will draft a syndicate letter. This letter describes:
• The obligations of each member
• The share of the members’ participation in the underwriting
• How bond orders will be handled
It also specifies the amount of the bonds to be issued and their terms