The dissertation aims to analyze the process of issuing new bonds in the EUR debt capital markets and, more specifically, the approach by which investment banks consort with each other (syndicates) to jointly execute a new issue. In this thesis, the aspects of fairness, efficiency, and regulatory implications were first analyzed from a theoretical perspective in the literature review, and the information gleaned was thereafter combined with a practical view based on a survey conducted with 54 active syndicate professionals. Additionally, experts with more than ten years of experience were interviewed in order to enhance the reliability of the findings. The outcomes, therefore, showcase an extensive comparison between theory and practice, while also outlining prospective trends within the business of primary markets.
In summary, this thesis reveals aspects of the syndication process, as it is executed on a daily practical basis, that appear contrary to a theoretical impression of efficiency and fairness. However, the input from current professionals highlights the immensely complex and varied applicable strategies, and that many aspects must be evaluated on a case-by-case basis.
On the contrary, the newly implemented regulations that shape the syndication process were determined to be unable to comply with such sophisticated requirements. Thus the analysis concludes that the syndication business is self- regulating by nature and that it is harmed by a lack of equal application by the investment banks within the EUR area.
Moreover, the syndication professionals indicated a strong trend towards automation and digitalization of the process, even though a more detailed investigation of this aspect showed that full exclusion of investment banks is not desirable because of a number of operational and strategic reasons.
Inhaltsverzeichnis (Table of Contents)
- Abstract
- Acknowledgements
- Syndication is an art not a science
- Introduction
- Literature Review
- Theoretical Framework
- Definition of Syndication
- Types of Syndication
- Benefits of Syndication
- Drawbacks of Syndication
- Fairness in Syndication
- Efficiency in Syndication
- Regulatory Framework
- European Union
- United States
- United Kingdom
- Methodology
- Survey Design
- Expert Interviews
- Results and Analysis
- Market Practices
- Syndicate Structure
- Syndicate Operations
- Regulatory Impact
- Future Trends
- Conclusion
- References
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This dissertation delves into the intricate process of issuing new bonds within the EUR debt capital markets, specifically focusing on how investment banks collaborate in syndicates to execute new issues. The study aims to analyze the syndication process from both theoretical and practical perspectives, examining aspects of fairness, efficiency, and regulatory implications. The investigation employs a mixed-method approach, incorporating a literature review, a survey of active syndicate professionals, and interviews with experienced experts. This combination allows for a comprehensive comparison between theory and practice, revealing insights into the dynamics of primary markets.
- The syndication process in debt capital markets
- Fairness and efficiency in syndication
- Regulatory implications of syndication
- The role of technology and automation in syndication
- Future trends in the syndication business
Zusammenfassung der Kapitel (Chapter Summaries)
The dissertation begins with an introduction that provides an overview of the research topic and outlines the objectives and scope of the study. The literature review delves into the theoretical and regulatory frameworks surrounding syndication, exploring concepts like fairness, efficiency, and the impact of regulations on the process. The methodology section details the research methods employed, including the survey design and expert interviews. The results and analysis chapter presents the findings of the research, examining market practices, syndicate structure and operations, the impact of regulations, and future trends in the syndication business.
Schlüsselwörter (Keywords)
Debt capital markets, syndication, primary market benchmark, fairness, efficiency, regulatory implications, automation, digitalization, investment banks, European Union, EUR debt market, financial institutions.
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- Alexander Malitsky (Autor:in), 2017, Investigation and Evaluation of the Primary Market Benchmark Syndication Process in Debt Capital Markets, München, GRIN Verlag, https://www.grin.com/document/373202
