Bond issue risk management

Abstract

The present invention provides an auction system that allows bond issue sales to be offered in an open and transparent manner, wherein, a certain percentage (up to 100%) of bonds in a bond issue can be offered to qualified bidders at a “buy now” pre-auction price, set by an issuer and/or lead manager. Investors can be allowed to “bid some bonds out of the auction process” and thus guarantee their allocation and also allow bidders to participate in an open auction for other bonds. Bonds to be offered in a bond issue can include a subset of pre-auction price bonds and a subset of auction price bonds. The pre-auction price bonds are offered to pre-auction bidders at a pre-auction price, and auction bonds are generally sold to the highest bidder. Pre-auction sales can serve as a catalyst for generating enthusiasm for an associated bond issue auction.

1 - 19 . (canceled) 
     
     
         20 . A processor-implemented method of obtaining one or more bonds comprising a bond offering, the method comprising:
 receiving via a processor information descriptive of the bond offering including suitable pre-auction participatory credit criteria;   allocating a portion of the bond offering as auction price bonds;   determining bidder qualification based on the pre-auction participatory credit criteria;   receiving an offer to obtain one or more bonds comprising the bond offering at a pre-auction price; and   indicating an acceptance to purchase the one or more bonds offered at the pre-auction price, wherein information descriptive of one or more pre-auction sales of one or more bonds comprising the bond issue is published and remaining bonds comprising the bond issue are auctioned after said one or more pre-auction sales.