About the Bond Tender Bid Allotment Evaluator

A bond tender offer is an invitation by an issuer to repurchase some of its outstanding bonds before maturity. Bids can be entered either by institutional underwriters (dealer-manager lines, typically aggregated across underlying clients) or by direct investors (single-investor buybacks, mutual funds, pension plans, insurance accounts tendering for their own book). The issuer runs an allotment to decide which bids to accept and at what clearing yield.

The Dutch-style allotment

This tool implements the Dutch-style reverse auction with uniform clearing yield — the convention used by US Treasury buyback operations and most Asia-Pacific sovereign tenders. Bids are ranked from lowest yield (cheapest for the issuer) to highest yield. The engine fills from the bottom up until the cumulative face value reaches the issuer's target repurchase amount. The highest accepted yield becomes the single uniform clearing yield that all winning competitive bidders receive. Non-competitive bids are filled first (within the optional non-competitive limit) and are paid the weighted-average yield of all accepted competitive bids.

Bidders: underwriters and direct investors

The Bidders card has two tabs. The Underwriters tab is for institutional dealer lines — each underwriter carries a unique 1-12 character code (GSCO, MSCO, JPM, …) plus a display name. The Direct investors tab is for standalone investor bids (Acme Pension Fund, Northbridge Insurance, etc.) — no dealer code is required. Both bidder types participate in the same allotment; bids are ranked purely by yield regardless of source. Optional underlying-client breakdown captures cases where an underwriter bids on behalf of a specific client (or an investor names a specific fund).

Pro-rata at the cutoff

When the cutoff yield is oversubscribed (the bids at that yield exceed the remaining target), every bid at the cutoff yield is scaled by the same pro-rata factor. The selected non-competitive overflow method (first-come, first-served or pro-rata) determines how the non-competitive bucket is divided when it exceeds its limit.

Six price-input modes

• Percent — price as a percentage of face value (e.g., 99.50).
• Dollar — price as currency per $100 of par (e.g., $99.50).
• YTM — yield-to-maturity in % per annum; the canonical price is derived.
• Yield-to-Call (YTC) — yield assuming the bond is called at a specified date and price.
• Yield-to-Worst (YTW) — the worst (lowest) yield across all user-defined call dates plus maturity.
• Spread — basis points over a user-specified benchmark yield.

Zero-coupon, perpetual, and negative yields

The tool handles three special bond types: vanilla coupon (the default), zero-coupon (single bullet cash flow at maturity; only percent / dollar / YTM input modes are legal), and perpetual (coupon stream with no maturity; only percent / dollar / YTM and — when call dates are defined — YTW). Negative yields (JGB, Swiss confederation, selected EU sovereigns) are fully supported: negative bids are filled first, the clearing yield is the least-negative accepted yield, and a yellow info badge surfaces the condition without treating it as an error.

Save, share, export

The current tender persists to your browser's localStorage. Click Share Link to copy a URL that re-hydrates the entire tender in any browser or private window. Click Export CSV to download a two-section spreadsheet (bids and allotment result) with translated column headers — each row is tagged with its bid source (underwriter or investor) and the underlying-client breakdown where applicable. Built-in presets cover a vanilla 5-year corporate repurchase, a zero-coupon sovereign buyback, a perpetual bank-capital tender, a negative-yield JGB scenario, a three-way cutoff tie, all six price-input modes, and a single-investor buyback.

Educational only. Not investment advice.

All computation runs in the browser. No tender data — issuers, bidders, bids, yields — are sent to any server. This tool is for educational and analytical use; verify any trading decision with your broker or issuing agent before execution.