Pricing and Sensitivity to Bond Issuance Volumes

Transaction vs Relationship Pricing – Policy Considerations:

• Transaction pricing creates greatest revenue in a growing capital market

• Customers require price discount to switch to relationship-based pricing

• Current mix promotes growth, and has not created overly volatile financial results for Moody’s

Transaction Pricing:

• Corporates and financial institutions:
• 4.00 bps on issue size
• Minimum $48K
• Surcharge on very large issues, max $330K

• Up to 11 bps or more in complex or

labor-intensive structured finance

• As low as $1K in public finance

Relationship Pricing:

• Frequent issuer pricing

• Programs: CP, ABCP, MTNs

• Issuer-level ratings

*

Previous slide

Next slide

Back to first slide

View graphic version