Agreement Among Underwriters (AAU) or Agreement Among Managers (AAM)

Definition:

An agreement, prepared by the underwriters’ counsel, governing the relationship between members of the underwriting Syndicate on a securities transaction. Among other things, it appoints and mandates the Lead Manager, defines each member’s proportionate liability and authorizes the Lead Manager to allocate units to the relevant underwriter.

Also known as a Syndicate Agreement.

Return to Glossary