I am having a hard time remembering total take down and spread. I was hoping there was a video. Any tips? Thanks
@Jessie_Harvey I understand how confusing those terms can be!
Spread refers to the total profit that the underwriting syndicate can make from selling bonds. It’s made up of the management fee, additional takedown, and selling concession. Just think of it as how much money the syndicate earns for their work.
Total takedown, on the other hand, is the amount a syndicate member earns for selling a bond. It combines the additional takedown (for taking on liability) and the selling concession (for actually selling the bond).
To remember: The spread is the total profit for the whole group, while the total takedown is the earnings for each individual seller. Think “spread = total profit for the syndicate” and “total takedown = earnings for individual sellers.”
Hope this helps!
Best,
Mataia