Chapter
List of Charts and Tables
Definition, Function, and Characteristics
Framework and Size of the Canadian Capital Market
2. Private Placements and Public Offerings
Private Placements in The United States
Private Placements in Canada
Advantages and Disadvantages of the Private Placement Issue
The Firm Commitment and Timing
The Exchange of Information
Advantages of Private Placements to The Lender
Disadvantages of The Private Placement
3. The Private Placement Market
The United States Experience
4. Operational Efficiency and The Cost of Bond Flotation
Costs of Flotation in the Canadian Market
Costs of Flotation in the United States Market
Cost-of-Flotation Differentials between Canada and the United States
5. The Bargaining Process in Private Placements
Bargaining and the Cost of Flotation
The Pricing of Private Placements
6. Investment Dealer Influence on Operational Efficiency
The Private Placement Agency Fee
The Underwriting Spread and the Public Offering
Risk-Reducing Factors in The Sale of Public Offerings
Preconditioning of the Institutional Lender
The Size of the Banking Group
The Practice of Stabilization and Overallotment
The Pricing of the Public Issue
Competition in the Investment Dealer Business
The Borrower-Dealer Relationship
The Noncompetitive Purchase of Bonds for Sinking Funds
High Underwriting Spreads and Investment Dealers
The Provision of Free Services
Underwriting Spreads and the Retail Market
Underwriting Spreads, Concentration, and Profitability in the Investment Dealer Business
Pricing in the Borrower-Dealer Relationship
7. Allocational Efficiency in The Corporate Bond Market
The Measurement of Allocational Efficiency
The Influence of the Secondary Market
The Influence of the United States Market
8. Allocational Efficiency and The Role of Institutional Lenders
The Institutional Lenders
Institutional Sophistication and Sensitivity in The Market
Some Institutional Barriers to Allocational Efficiency
Discrimination in the Corporate Bond Market
Measures to Improve Allocational Efficiency
9. Bond Market Efficiency—The Implications for Public Policy
Securities Legislation and the Role of Government
The Role of a Securities and Exchange Commission
Self-Regulation and Public Policy
Investment Dealers and the Public Interest
Public Policy and Operational Efficiency
Public Policy and Allocational Efficiency
Economics of the Canadian Corporate Bond Market
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