WASHINGTON - A handful of issuers or conduit borrowers were among the first to successfully bid on their own auction-rate securities and dramatically lower the high interest rates they were paying, while other issuers indicated in disclosure filings that they intend to bid on their ARS as early as tomorrow.

The bids come after the Securities and Exchange Commission issued guidance March 14 that laid out the circumstances under which an issuer could bid on its own auction-rate securities without triggering enforcement for market manipulation. The SEC said in the guidance that the bids should be disclosed at least two days in advance along with the results of the immediately preceding auction, among other things.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.