A Question About Bond Trading???

Question

I understand how trading in equities (stocks and shares) works, but how does trading in fixed income (bonds) work???

How exactly does one trade in bonds???

Answer 1

Redwine is close. You contact the dealer and they offer to sell you the bonds. Where he is wrong is that they usually don't own the bonds already. Instead, they will give you a price where you can buy or sell (the bid price or the ask price). If you go ahead with it, they will then track down the bond and deliver it to you at the promised price. Half the time, they get it from another customer -- and half the time they get it from another dealer.

Bonds usually trade in lots of 100 bonds -- each with a face value of $1,000 -- so the trade size is usually between $100K and a few million. Most trades are by institutions and not by individuals.

When a trade is made, the dealer must announce the price of the trade to the world through a system called the TRACE system.

Answer 2

i do no longer think of Bonds would be traded. If Bonds is traded the attendence will bypass way down for the Giants. yet whilst he's he will bypass to the AL. I have not have been given any clue on who he would be traded to yet whilst i had to %. i might say the Yankees. additionally, i exchange into staring on the different solutions and that they say approximately how Bonds is a cheater and there must be * next to seventy 3. i'm no longer asserting Bonds did no longer use steroids yet provide the guy a wreck. i'm no longer a Bonds fan or a significant fan (i admire the mets) yet Bonds did what particularly some gamers did. And back then it wasn't an excellent deal if gamers used them. If the MLB could have been as strict on steriods as they're now back then. Bonds would not have used them. 10 years later from now all of us is gunna see that steriods quite did no longer make that significant of a distinction. and that i say that because of the fact baseball gamers elevate lots extra and have exercising habitual classes so gamers are going to be larger now and are going to get even larger as time is going on.

Answer 3

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Answer 4

no real exchange like the NYSE for bonds, its primarly OTC. Usually you contact a dealer that owns the bonds and he privides you with an offer price if you want to buy them. Many times they trade via thr published ratings (i.e. AAA), but sometimes there are specific credit issues that influence the price.

Answer 5

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Answer 6

Go to http://bond-yields.com to list of available bonds