Non-Competitive Tender


DEFINITION of 'Non-Competitive Tender'

One of the two bid processes for buying debt issuances. Non-competitive tender is for small investors, while competitive tender is for large institutional investors. The price that a non-competitive bidder receives is the average bid price of all competitive bids.

Also known as a "non-competitive bid".

BREAKING DOWN 'Non-Competitive Tender'

This is a method of distribution used primarily by the U.S. Treasury. The minimum non-competitive tender is $10,000, and these are usually made through a Federal Reserve Bank or a commercial bank.

There is no guarantee on the price or the amount received.

  1. Federal Reserve Bank

    The central bank of the United States and the most powerful financial ...
  2. Primary Distribution

    The original sale of a new security issue (bonds or stocks) from ...
  3. Debt

    An amount of money borrowed by one party from another. Many corporations/individuals ...
  4. Commercial Bank

    A financial institution that provides services, such as accepting ...
  5. U.S. Treasury

    Created in 1798, the United States Department of the Treasury ...
  6. Institutional Investor

    A non-bank person or organization that trades securities in large ...
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