What is the role of bond underwriters in the bond market?

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What is the role of bond underwriters in the bond market?

The role of bond underwriters in the bond market is to facilitate the issuance of bonds on behalf of the issuer. They help determine the terms and conditions of the bond, such as the interest rate, maturity date, and any special features. Underwriters also assist in marketing the bonds to potential investors and ensure that the issuance complies with regulatory requirements. Additionally, they may purchase the bonds from the issuer and then resell them to investors, thereby assuming the risk of selling the bonds at a profit.