We use computational linguistics to examine whether a ﬁrm’s risk factors in prospec- tus disclosures provide unique information that is useful for pricing the initial public oﬀerings of bonds. Credit ratings incorporate textual information related to the in- debtedness of the ﬁrm and its ability to repay its debt obligations. We ﬁnd that the initial yield spread fully incorporates the risk factors embedded in credit ratings but additional risks associated with the ﬁnancial condition of the ﬁrm and the covenants of the oﬀering are useful in pricing. The amount of risk disclosed in the prospectus is also a good indicator of subsequent changes in bond yields. More importantly, we do not ﬁnd any signiﬁcant diﬀerences in the usefulness of risk factor disclosures in predicting pricing and bond outcomes between private and public ﬁrms. Our results suggest that mandated securities disclosure provides salient information to investors in both the private and public markets.