Competitive Bid / Sale
A method of selling bonds in which one or more underwriters submit proposals for the purchase of the bonds.
bond-basics
Negotiated Sale
The sale of a New Issue of Bonds by an Issuer through an exclusive agreement with an Underwriter or Underwriting Syndicate selected by the Issuer. A Negotiated Sale is distinguished from a Competitive Sale, which involves a public bidding process for the purchase of the Bonds.
Preparing Bonds
Learn about over various terms and concepts that may arise while preparing a bond issue.
In Contrast With
Start with the Bond Basics
Hundreds of Terms and Concepts
Variable Interest Rate
The interest rate on a bond which varies according to a formula set forth in the bond or the indenture or bond resolution/ordinance or based on the interest rate required by a remarketing agent to remarket the bonds at par.