Firstly introduced in 1981 in the Eurobond Market when General Motors Acceptance Corporation sold to Credit Suisse First Boston a $100 million issue without the traditional syndication process, bought deals became popular in the 1980s in the United States and the UK. A bought deal is an underwriting technique typically used in the underwriting of bonds structured as follows. At the very beginning of the issuance process, the underwriting firm offers a bid for new shares to a company that needs to raise capital. The underwriter commits itself to purchasing a determined amount of securities with a certain coupon and maturity to resell them and earn a return on the deal. The issuer may decide to accept the offer within a defined period of time, typically only a few hours. In case of acceptance, the underwriter has bought the deal and it starts to sell the purchased securities to other investment banking firms or to its institutional investors. Although the bought deal presents several advantages, it places the underwriter at risk of capital loss, which can be mitigated by implementing hedging strategies via interest rates control. 

Fabozzi F., Modigliani F., Jones F. (2010), Foundation of Financial Markets and Institutions, Pearson International Edition.