Aramco Bonds Sink for Second Day

Aramco Bonds Sink for Second Day

Assessment

Interactive Video

Business

University

Hard

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The video discusses a major debt deal that initially seemed promising but faced challenges as bond prices fell. The focus is on the 10-year bond, which saw its spread to US Treasurys widen, raising questions about the aggressive pricing and the $100 billion order book. The corporate bond market's lack of transparency and the phenomenon of padded order books are highlighted, with a look at how these practices have caught regulatory attention, especially in Europe. The role of syndicate bankers in managing pricing and avoiding sales to flippers is also examined.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

Discuss the implications of the lack of transparency in the corporate bond market as mentioned in the text.

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the potential consequences for investors who place large orders in a hot deal, according to the text?

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