From the course: Applied Fixed Income

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New issue distribution

New issue distribution

From the course: Applied Fixed Income

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New issue distribution

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- [Instructor] Remember, if you will, when I talked about US treasury auctions, how we look at the post-auction statistics to determine how the auction went, and perhaps get an idea of how that particular issue will perform in the secondary market. The same thing can be done with supernational sovereign and sovereign-agency issuers. We look at the statistics of the deal, and normally you can find this either on the issuer's website as I did for this IBRD transaction, but normally the joint lead managers would also disclose this information after the deal has priced. Now, there tends to be three things I would suggest you note. Number one is the level of demand for the transaction, and that's generally measured by the size of the order book. In this case, the IBRD bond that we were discussing, the order book was reported to be 12 1/2 billion dollars for an $8 billion deal, which is over 1 1/2 times oversubscribed.…

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