Bonds are financial instruments used to raise capital for Governments and Corporates
- Not a central place to trade
- Its called over the counter market
- Organised by type of security
- Most are sold dealer to dealer
Bonds are identified by ISIN (International Securities Identification Number) which consists of three parts
- Two letter country code. Special code ‘XS’ is used for international securities cleared through pan-European clearing systems like Euroclear and CEDEL.
- Nine digit numeric identifier, called National Securities Identifying Number (NSIN).
- Single check digit to validate against counterfeit ISINs.