What term is used to describe an international sale of bonds that is often secured in advance by an underwriter?

The term used to describe an international sale of bonds that is often secured in advance by an underwriter is referred to as a "bought deal." In this arrangement, the underwriter agrees to purchase the entire bond issue from the issuer before it is offered to the public. This provides the issuer with immediate certainty regarding the proceeds from the bond sale, as the underwriter takes on the risk of reselling the bonds to investors.

A bought deal presents several advantages for the issuer. It allows for a quicker sale as the issuer does not have to wait for investor demand to materialize, which can lead to a faster capital-raising process. Additionally, since the bonds are purchased at a fixed price, the issuer can plan its finances with more certainty.

In contrast, other terms like "purchased deal" or "underwritten deal" do exist in financial contexts, but they do not specifically denote the pre-arranged commitment characteristic of a bought deal. "Premium deal" is not a standard term in bond markets, further differentiating it from the bought deal concept. The specificity of the term "bought deal" in the context of international bond sales emphasizes the nature of the transaction and the role of the underwriter in securing the sale in advance.