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Coupon guidance

The range of rates the arranger announces before order collection in order to test demand.

How to read the number

The way guidance moves during collection is informative in itself: tightening downward means more demand arrived than there is bond to sell.

When the metric lies

Guidance promises nothing. The final rate may settle below the lower edge, and the placement may not happen at all; both outcomes are normal for the procedure.

Also known as: price guidance, initial rate talk

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