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 auctionratesecurities ... · An auctionratesecurity (ARS) is a variable-rate security sold to investors through a Dutch auction at the lowest interest rate possible. Auctionratesecurities (ARS) are debt or preferred equity securities that have interest rates that are periodically re-set through auctions, typically every 7, 14, 28, or 35 days. · Auction rate securities (ARS) are long-term debt instruments that have their interest rates reset through periodic auctions. They are typically issued by municipalities, corporations, or student loan providers, and are backed by assets such as bonds, mortgages, or student loans. Auction rate securities (ARS) are debt or preferred equity securities whose interest rates are periodically reset through auctions and which are issued with long-term maturities or in perpetuity. Auction-ratesecurities (ARSs) coupled long-term maturity borrowing with interest rates linked to short-term money markets by periodic auctions, and thus combine features of short- and long-term securities. · Auction Rate Security (ARS) is a unique variable-rate debt security sold through a Dutch auction. Whether in the form of long-term bonds or preferred shares, ARS entices investors with interest rates determined through periodic Dutch auctions occurring every seven, 14, 28, or 35 days.
