After years of scheming to become an investment bank, Citadel has finally bagged its bond deal.
It is one of two lead underwriters for Advanced Micro Devices’ (AMD) $500 2017 senior notes offering, reports FINalternatives. The other lead underwriter is JP Morgan. (JPM)
The bonds have already been priced at apparently a 10% 10.204% yield and the deal should close by November 30th.
Government regulations prevent Citadel from realising what could be a tremendous upside to vertically integrating bond underwriting and investing. In a free market, Citadel’s move into investment banking would allow the firm organise its own deals, and then have its funds invest in them. The savings on underwriting fees alone would be tremendous. Unfortunately, even our allegedly deregulated financial system isn’t yet open to this kind of vertically integrated investing.