Business: Cut-Rate Financing

Hallowed by at least four generations of profitable practice is the underwriting of big bond issues. Advantage to the borrowing corporation is the fact that it gets its money in a lump sum on a definite date irrespective of current market conditions. And the "spread" between the price the corporation receives for its bonds and the price the public pays is supposed to compensate the banker not only for his time & trouble but also for his risks.

Last March the Manhattan firm of Salomon Brothers & Hutzler...

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