Building the Book and Indications of Interest (IOIs)
Chapters in this video
- 0:00 What the syndicate manager's book actually tracks
- 1:25 Indication of interest (IOI) defined: the non-binding dating profile
- 2:03 The non-binding trap and late-cycle ghosting risk
- 2:30 Demand curve mechanics and the covered-book rule
- 4:35 Four parallel tracks in Blake's master ledger
- 5:15 Exam trap: committed IOIs plus prospective accounts both live in the book
- 5:50 Exam trap: underwriter splits tracked inside the book, not separately
- 6:15 Three mandatory screens before any allocation
- 6:43 New-issue eligibility and the restricted-person block
- 7:21 Quality of account: long-term holders vs fast-money flippers
- 8:27 Rapid-fire exam recap
What this video covers
- Why indications of interest (IOIs) are non-binding until the final price is set, and how a covered book can still go to the wire
- How the syndicate desk aggregates IOIs into a demand curve at each price level, and what it means for a book to be covered
- The four parallel tracks inside the book: investor interest, price-level information, prospective investors, and underwriter splits
- Why the demand curve drops as price rises, and how a sharp drop above the midpoint signals a soft top
- The three mandatory pre-allocation screens: know your customer (KYC) and anti-money laundering (AML), new-issue eligibility, and quality of account analysis
- How the new-issue rule blocks restricted persons from receiving IPO common stock allocations
- Why quality of account analysis drives allocation more than raw IOI size, and how holding-period history favors long-term holders over fast-money flippers
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