A way to distribute a bond to investors. In a competitive tender, the issuer receives bids from large companies or other investors to buy the bond issue; the highest bid receives the issue. The winner, at its discretion, may or may not distribute portions of the issue on the secondary market. The Bank of Canada uses competitive tenders to sell its bonds.
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competitive tenderan invitation for private sector firms to submit TENDERS (price bids) for contracts to supply goods or services to the public sector which the public sector has traditionally supplied for itself Competitive tendering seeks to introduce competition in the provision of goods or services and thus reduce the costs to government departments, local authorities and health authorities. See DEREGULATION.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005