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maturity by maturity bidding

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Financial Dictionary

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 Commentary

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

Related Links

Brokerage Functions: Underwriting And Agency Roles
Bond Basics Tutorial
Advanced Bond Concepts
Corporate Bonds: An Introduction To Credit Risk

See also: All or None - AON, Bond, Maturity Date, Underwriter, Venture Capital

Also spelled: MBM

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