Lender
The entity or entities, typically commercial banks, which purchases the bonds pursuant to a private placement for its own portfolio.
bond-basics
Private Placement or Direct Purchase
The negotiated offering of a New Issue of Bonds directly to one or a limited number of purchasers without using an Underwriter. The Bond purchasers are typically institutional or private investors who may agree to restrictions as to resale, and the purchasers may be required to sign an agreement acknowledging these transfer restrictions.
See Also
Private Placement Memorandum
A type of offering document used in a private placement.
Start with the Bond Basics
Hundreds of Terms and Concepts
Arbitrage
Profit from differences in markets. All tax-advantaged bonds are subject in one way or another to the arbitrage requirements, which are contained in Section 148 of the Code and the Treasury Regulations that go along with it.