Dutch auction - Wikipedia, the free encyclopedia - The Diigo Meta page

• 15 May 18
  

  charryan2005
• 30 Dec 08
  

  Brenda Walker

  ideas

• 07 Dec 08
  

  Anton T
  • Theoretically, the bidding strategy and results of this auction are equivalent to those in a sealed first-price auction.
  • This type of auction is convenient when it is important to auction goods quickly
• 06 Mar 08
  

  Wesley Shu

  dutch_auction intromis

  • Dutch auction is a type of auction where the auctioneer begins with a high asking price which is lowered until some participant is willing to accept the auctioneer's price, or a predetermined reserve price (the seller's minimum acceptable price) is reached. The winning participant pays the last announced price.
  • • $1.0 billion at 5.115%
     
    • $2.5 billion at 5.120%
     
    • $3.5 billion at 5.125%
     
    • $4.5 billion at 5.130%
     
    • $3.75 billion at 5.135%
     
    • $2.75 billion at 5.140%
     
    • $1.50 billion at 5.145%
  • This auction will clear at a yield of 5.130 percent and all bidders will pay the same amount.
  • Bids will be filled from the lowest yield (highest price) until the entire $10 billion has been raised.

  • For example, suppose the sponsor of the issuance is seeking to raise $10 billion in ten-year notes with a 5.125% coupon and in aggregate the bids are as follows:

     
     
    • $1.00 billion at 5.115%
     
    • $2.50 billion at 5.120%
     
    • $3.50 billion at 5.125%
     
    • $4.50 billion at 5.130%
     
    • $3.75 billion at 5.135%
     
    • $2.75 billion at 5.140%
     
    • $1.50 billion at 5.145%
  • This auction will clear at a yield of 5.130%, and all bidders will pay the same amount.

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