bond-basics

Selling Group Agreement

An agreement sometimes used in addition to an Agreement Among Underwriters when a selling group consists of more entities than just Underwriters in a Syndicate.

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Agreement Among Underwriters

Agreement used in the purchase of a bond issue by a syndicate to set out the rights, obligations and purchase commitments of each underwriter; to authorize one or more underwriters to act as manager(s); and to give the manager(s) authority to act on behalf of the others in connection with the bond issue.

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Direct Pay Bond

A taxable bond that offers a federal Interest subsidy to the Issuer in lieu of the interest being excludable from federal income tax.