An auction rate security (ARS) typically refers to a debt instrument (corporate or municipal bonds) with a long-term nominal maturity for which the interest rate is regularly reset through a dutch auction. Since February 2008, most such auctions have failed, and the auction market has been largely frozen. In late 2008, investment banks that had marketed and distributed auction rate securities agreed to repurchase most of them at par.
Read more about Auction Rate Security: Background, Overview, 2008 Auction Failures, Centralized Access To Municipal Auction Rate Security Information, Apparent Benefits of Auction Rate Securities, Valuation of Auction Rate Securities
Famous quotes containing the words auction, rate and/or security:
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