Qualified institutional buyer

A “QIB” is a company that manages a minimum investment of $100 million in securities on a discretionary basis or is a registered broker-dealer with at least a $10 million investment in non-affiliated securities, and can therefore buy Rule 144A private placements.

The Law and Lore of Repackaging From our machine overlords Here is what, NiGEL, our cheeky little GPT3 chatbot had to say when asked to explain: A “qualified institutional buyer” is a class of investor that is deemed financially sophisticated under the US regulatory memeplex — banks, insurance companies, pension funds, hedge funds — that aligned empire of dark forces bent on destroying society basically [Hey David Graeberbot: pipe down, would you? — Ed] to need less protection from securities issuers and — hic — their arrangers than redditors, day traders — ironic, right? — and docile and credulous grammaws and grampaws in the mid-west who are easy pickings for the unscrupulous jackals and locusts who make up the bulk of the financial services industry [Graeberrrrrrr! — Ed]. They can buy private placements of securities that have not been registered with the SEC. The editor also tells me a “QIB” is also a form of regulatory stick grenade used to defuse financial weapons of mass destruction in the Battle of Bretton Woods, but I didn’t find that on the internet, and nor will you, because he clearly just made that up. view template Disclaimer: NiGEL’s a neural network, he drinks a lot, and he spends too much time on the internet, so if you listen to anything he has to say you only have yourself to blame. Come to think of it, that is also true of the JC in general. Repack Anatomy: Hedging exemption | Covenant to pay | Quoted Eurobond exemption | Pre-enforcement | The curious structure of an MTNIndex: Click ᐅ to expand: Repackaging Tell me more Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here. Premium version of this page

The Law and Lore of Repackaging →Go uptown Repack Anatomy: Hedging exemption | Covenant to pay | Quoted Eurobond exemption | Pre-enforcement | The curious structure of an MTNIndex: Click ᐅ to expand: Repackaging Tell me more Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here.

Wikipedia has a pretty good entry on QIBs:

https://en.wikipedia.org/wiki/Qualified_institutional_buyer

This concept is relevant to U.S. persons who are purchasing debt securities in offerings which are not SEC registered. Generally US persons cannot buy from public offers of securities that are not registered with the SEC (known as Regulation S issues - it includes most Eurobonds issued in the London market.

There is an exemption - the Rule 144A exemption, which applies to private offers of securities to QIBs. QIBs are basicvally "big boys" who do not require SEC protection to make these investments. They must hold the securities for a certain period before selling them.

Not to be confused with TEFRA rules relating to bearer securities, which are tax related.

===FWMD===

Also, a type percussive stick grenade that saw action in the Battle of Bretton Woods, and also features in the Opco Boone adventure, SIV Endgame

See also

• US private placement