Explanation of Bid Portfolios

Not every portfolio sold through NDSE is sold on an individual account basis. Some sellers elect to offer their entire portfolio for sale to one buyer. Sellers may choose whole portfolio sales for a number of reasons including, but not limited to their ability to provide post-sales support to multiple buyers, resale restrictions such as buyer approvals and internal company policies. In many cases, a national portfolio will be broken down into small regional or state portfolios and each of the smaller portfolios are offered for bid through NDSE.

When a whole portfolio is listed on CMAX NDSE, it can be sold in an auction format. Similar to other online auctions like eBay, buyers can post their bid on the portfolio or choose “buy-it-now” to end the auction and make the purchase at the listed “buy-it-now” price.

Understanding Bid Pricing

Debt sellers on the NDSE choose the prices for the portfolio prior to listing it for sale. Along with the NDSE Business Development team, sellers determine the opening price, reserve price (optional), and buy it now price (optional) for every portfolio that they list for sale.

Opening Price: The minimum bid price that the system will accept for the portfolio through the exchange. Any bid that is placed below the opening price will not be accepted. The opening price is always listed with the portfolio and is available to the buyers.

Reserve Price: The reserve price is the minimum price that the seller will accept for the listed assets. The reserve price is not known by the Sales Team or buyers during the auction process. This is standard practice for auctions with reserve prices. Bids may be placed below the reserve as long as they exceed the opening price. Bids that do not meet or exceed the reserve price will not be executed at the end of the timeframe. The highest bids will be presented and discussed with the seller. Bids meeting or exceeding the reserve price set by the seller will be automatically executed online at the end of the auction listing period.

Buy-It-Now Price: When a debt buyer chooses to pay the “buy-it-now” price, the auction automatically ends and the trade is executed online. Not all auctions on NDSE will have a “buy-it-now” price listed. Some buyers choose to purchase using the “buy-it-now” feature to ensure they win the auction bid.

CMAX NDSE also includes features in the system that ensures all buyers have a fair opportunity to make a bid for the assets listed. NDSE has a time extender built into the system. The time extender extends the auction time by 15 minutes if a bid is received in the last 15 minutes of the auction. For example, if the auction is set to end at 3pm and a bid is received at 2:58 pm the auction time will extend and the auction would end at 3:13 pm.