Hello
Can anyone explain the difference between an underwriter and a market maker in the context of issuing bonds?
Thanks.
CIMA Forums
Debt Finance
9y ago#1Hi,
The underwriter is responsible for when the bond is issued, with regards the issue itself, the pricing and also buying bonds if it is unsuccessful.
The market maker ensures the liquidity of the market by holding bonds after issue that it will trade regularly.
Hope this helps.
Thanks
Sign into reply to this topic.