A competitive mandate too far?

Lead manager Goldman Sachs found itself faced with one of the most unenviable execution jobs of the year yesterday (Wednesday) as it tried to clear a $700 million convertible for Cathay Financial Holdings. Pricing of the deal, which sets a new record in terms of size, not only came at the widest end of all its indicative ranges, but the bonds were also offered out to investors at 99% rather than par, meaning that the lead sacrificed most of its fees in order to complete it.