What is a Bulge Bracket Investment Bank?
BB’s are basically the biggest firms on Wall St. The term comes from M&A advertisements. The names of the large firms that handled most of the underwriting for an offering would be printed larger, and higher up on the page than the other firms. This part of the advertisement was called the “Bulge Bracket,” and the word came to be synonymous with those firms. There used to be fairly strict rules about which firms were even eligible to run an underwriting, and how much each of the various firms was allowed to participate in the placement process. It’s not quite as strict anymore, but the legacy has largely continued as a gentleman’s agreement.
