Maturity by Maturity Bidding - MBM

AAA

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.

RELATED TERMS
  1. All Or None - AON

    A condition used on a buy or sell order to instruct the broker ...
  2. Venture Capital

    Money provided by investors to startup firms and small businesses ...
  3. Maturity Date

    The date on which the principal amount of a note, draft, acceptance ...
  4. Bond

    A debt investment in which an investor loans money to an entity ...
  5. Underwriting

    1. The process by which investment bankers raise investment capital ...
Related Articles
  1. Brokerage Functions: Underwriting And ...
    Brokers

    Brokerage Functions: Underwriting And ...

  2. Corporate Bonds: An Introduction To ...
    Bonds & Fixed Income

    Corporate Bonds: An Introduction To ...

  3. Advanced Bond Concepts
    Bonds & Fixed Income

    Advanced Bond Concepts

  4. Bond Basics Tutorial
    Retirement

    Bond Basics Tutorial

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center