Underwriting
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Securities underwriting
Securities underwriting is a way of placing a newly issued security, such as stocks or bonds, with investors. A syndicate of banks (the lead-managers), underwrite the transaction, which means they have taken on the risk of distributing the securities. Should they not be able to find enough investors, then they end up holding some securities themselves.
League tables
Underwriting activity reported in Thomson Financial League Tables ([1]) (numbers in $ billion) (number of isses in parenthesis):
Global debt, equity & equity-related
- 2004: 5,693 (20,066) (Q4 2004 report)
- 2003: 5,326 (19,706) (Q4 2003 report)
- 2002: 4,257 (?) (Q4 2003 report), 3,902 (14,070) (Q4 2002 report)
- 2001: 4,112 (?) (Q4 2002 report)
Global debt & equity disclosed fees
- 2004: 15.401 (6,890) (Q4 2004 report)
- 2003: 14.461 (8,023) (Q4 2003 report)
- 2002: 14.762 (6,696) (Q4 2003 report), 14.130.7 (5,649) (Q4 2002 report)
- 2001: 17.930 (7,027) (Q4 2002 report)
Insurance underwriting
Underwriting may also refer to insurance; the electrical safety organization Underwriters Laboratories was founded by a group of insurers after watching the House of Electricity on a local fairground destroyed by fire due to faulty wiring. A leading underwriter is insurance broker Lloyd's of London.
Other
Underwriting may also refer to financial sponsorship of a venture.
