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Big-boy letter: Difference between revisions
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{{a|repack|}}A written acknowledgement from an investor that it accepts the risks of the deal and is not relying on the arranger to explain the risks and potential downsides. This works — ''may'' work: we hear some inarticulable doubt expressed about that by [[law firm]]s, who have a direct interest in being sceptical about it, since that way they get to write a turgid five-hundred page [[prospectus]] cataloguing any risk they can think of without risk — for “[[Professional client|professional]]” or “[[Qualifying institutional buyer|institutional]]” investors buying your deal but it won’t for [[retail]] investors, at least beyond the regulatory reach of the [[Securities and Exchange Commission]]. | {{a|repack|}}A written acknowledgement from an investor that it accepts the risks of the deal and is not relying on the arranger to explain the risks and potential downsides. This works — ''may'' work: we hear some inarticulable doubt expressed about that by [[law firm]]s, who have a direct interest in being sceptical about it, since that way they get to write a turgid five-hundred page [[prospectus]] cataloguing any risk they can think of without themselves ''taking'' any risk — for “[[Professional client|professional]]” or “[[Qualifying institutional buyer|institutional]]” investors buying your deal but it won’t for [[retail]] investors, at least beyond the regulatory reach of the [[Securities and Exchange Commission]]. | ||
In America, as Matt Levine is fond of saying, “everything is securities fraud”, and big boy letters may well not work. (But [[you would say that]], [[legal eagles]]...) | In America, as Matt Levine is fond of saying, “everything is securities fraud”, and big boy letters may well not work. (But [[you would say that]], [[legal eagles]]...) | ||