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". Investopedia Says:
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. Related Terms:
Bank of Canada - BOC
Commercial Bank
Competitive Tender
Debt
Federal Reserve Bank
Institutional Investor
New Issue
Primary Distribution
U.S. Treasury |