Washington County, Pennsylvania Uses YieldAuctionApril 11, 2003
Grant Street Group, the Pittsburgh-based Internet auction house for fixed-income securities, recently used its money market investment platform, YieldAuction, to solicit a $1,000,000, 182-day CD for Washington County, Pennsylvania. Traditionally, government entities and school districts solicit bids from banks via phone. Using the YieldAuction website, state and local governments are able to solicit bids easily and efficiently from a larger number of banks via the Internet and to conduct an on-line auction in which these banks bid against each other for the deposit. The state or local government gets the benefit of a higher investment rate from the combination of increased competition and the auction format. Solicitation amounts range from $100,000 (or less in some instances) to millions of dollars. In the Washington County auction, five banks from Pennsylvania submitted 7 bids during the 30 minute auction.