A competitive bid process is either a single-price auction or multiple-price auction.
In both cases, the issuer ranks bids by prices, choosing bids from highest to lowest until the desired issuance amount is reached. Under a single-price auction, all winning bidders pay the same price and receive the same coupon rate for the bonds regardless of their bid.
In contrast, a multiple-price auction process generates different prices among bidders for the same bond issue. The single-price auction process may result in a lower cost of funds and broader distribution among investors, while multiple-price auctions may result in a narrower distribution of large bids because investors must accept bonds at their bid price.
