Revenue Memo v1

Pre-Work Strategy and Initial Workflow Setup

Document Navigation and Strategy for Data Search

  • Search Methods for Recent Deals: The most efficient way to locate recent bond deals is via specialized search parameters on platforms like Bloomberg or MDL.

    • N I M 3: This code directs the user to US Corporate 144a144a replacement bonds.

    • N I M 1 (or NIM1): Used to access the general US bond market.

    • 2.842.84: A designation likely associated with Euro-denominated offerings (EUEU).

  • PDF Searching Capabilities: The speaker notes that certain software setups (e.g., Adobe versus web-based viewers) lead to different search experiences. Using the search function for terms like "loop" might show every occurrence in the document (e.g., 1818 instances), which helps in locating specific financial variables quickly.

Advanced Microsoft Excel Shortcuts for Financial Analysis

  • Row and Column Selection:

    • Shift + Space: Select the entire row.

    • Control + Space: Select the entire column.

  • Data Filling and Dragging:

    • Control + R: Formats or copies data to the right across a selected range.

    • Control + Enter: Fills all highlighted cells with the same value or data simultaneously.

  • Formula Auditing:

    • F2: Used to check cell references and ensure the "road check" sum is capturing the correct range.

Analysis of Underwriting and Prospectus Documentation

  • The Mandate: This document identifies the credit partners and specifically which banker is leading the deal. It serves as the primary reference for knowing who to contact for allocations.

  • Underwriting Agreement: Essential for finding "allocations," which define how many bonds need to be sold. It also includes specific terms and often houses the term sheet and pricing details.

    • Search Keyword: Searching the term "purchase" within the underwriting agreement will eventually lead to the "Sailing Derivative to the Underwriters," which lists all amounts and specific paragraphs detailing financial commitments.

  • Pricing Term Sheet: This is often preferred because information is laid out "one by one" and more clearly than in the larger prospectus. It is the definitive source for pricing terms.

  • Prospectus / Prospectus Supplement (Pro Sub): Contains the full issue description. If a full term sheet is unavailable, the Prospectus is the secondary source for the description of the notes and the terms.

Market-Specific Analysis and Comparison Traces

Questions & Discussion

  • Participant 1 (Learner): "How do you know what type of credit partner do you have?"

  • Participant 2 (Mentor): "It's in the mandate. It will copy the banker… there's never a credit partner or banks without it appearing there."

  • Participant 1 (Learner): "So when I pull this up, what am I specifically listening for or looking for?"

  • Participant 2 (Mentor): "Everything you need is in the Underwriting Agreement. What you need from the Underwriting Agreement are allocations—how many bonds you got to sell. What you need from the Term Sheet… is quite literally the terms. Public price is the price. The best way to find it in the Underwriting Agreement is to type 'purchase'."

  • Participant 1 (Learner): "Could you find those in Bloomberg?"

  • Participant 2 (Mentor): "Yeah, you could find this information in multiple places: Bloomberg, MDL. But get familiar with Bloomberg—that's the cheat code."