Maturity by Maturity Bidding - MBM

Definition of 'Maturity by Maturity Bidding - MBM'


A bond auction that allows bidders (who are underwriters) to submit bids for selected maturities in its issue, rather than requiring buyers to bid for the entire issue on an all-or-none (AON) basis.

Investopedia explains 'Maturity by Maturity Bidding - MBM'


This gives smaller underwriting firms more flexibility, allowing them to bid for part of the issue.


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