Austin Conducts Internet-only Bond Sale.

Austin, Texas, drew praise for its debt auction in the state's first all-Internet competitive bond sale. The all-Internet auction brought in more preliminary bids than ever before, and it received bid offers from firms that had previously never bid on Austin's bonds. Austin's sale included $51.1 million of public improvement bonds and $5.59 million of certificates of obligation. In auctions held in 1992 and 1994, the city received 29 preliminary bids and 21 actual bids, but during this September's Internet auction, they received 34 preliminary bids and 26 actual bids. Austin awarded the bonds to Hutchison, Shockey, Erley & Co. with a bid of 4.5923 percent. Most of the bidders claimed to be pleased with the ease of the process. Other Texas issuers have used the Internet to accept bids, but unlike Austin, they also accepted bids via phone and fax. Other Texas cities are expected to follow Austin's lead. (Source: The Bond Buyer, September 14, 1999.)