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This is my all-time favourite weapon in Dark Souls, so I simply had to bring it to Skyrim. The Bandit's Knife is a dagger that has innate bleed damage, just like its Dark Souls counterpart. The bleed damage only affects enemies that can bleed. The weapon can be enchanted as well without losing the bleed effect.
The weapon starts to appear in game after reaching level 10. It is sometimes used by enemies and sold by merchants. The weapon is injected into leveled lists with a script. It can also be crafted at a forge (requires 'Steel Smithing' perk).