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Article: Auction-Rate Securities: Bidder's Remorse? "A Primer".(Reprint)
- Article from:
- Mondaq Business Briefing
- Article date:
- May 9, 2008
- Author:
CopyrightCOPYRIGHT 2008 Mondaq Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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By Stephanie Lee, MBA, CFA*
Originally published 6 May 2008
Please click on the following link to view "Auction-Rate Securities: Bidder's Remorse? A Primer in its entirety, inclusive of all charts, footnotes and glossary of terms.
Auction-rate securities (ARS) are long-term variable-rate instruments with their interest rates reset at periodic and frequent auctions. They are often marketed to issuers as an alternative variable-rate financing vehicle and to investors as an alternative to money market funds. Investors have historically been able to liquidate ARS positions at face value at frequent auctions, leading many to consider them ...