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.

BREAKING DOWN 'Maturity by Maturity Bidding - MBM'

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

  1. Bond

    A debt investment in which an investor loans money to an entity ...
  2. Venture Capital

    Money provided by investors to startup firms and small businesses ...
  3. All Or None - AON

    A condition used on a buy or sell order to instruct the broker ...
  4. Underwriting

    1. The process by which investment bankers raise investment capital ...
  5. Maturity Date

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