Bonds

Bond Markets

Even though Bond Market is a common jargon, in reality there is no singular place or exchange where bonds are traded. In-fact, the bond market is a huge OTC ( Over the Counter ) market,  consisting of independent dealers, organised by types of securities. Buyers of bonds are primarily large institutions. This market can also be referred as a wholesale market with almost unreal amount of transactions taking place. U.S. government bonds are traded in block of Read more…

Bonds

Types of Bonds By Issuers

Government Bonds These are bonds issued by a national government, denominated in the country’s own currency, for example Australian Commonwealth Government Bonds and US Treasuries. Government bonds are usually referred to as risk-free bonds with very low default risk and are among the safest investments, because the government can raise taxes or print money to redeem the bond at maturity. Bonds issued by national governments in foreign currencies are normally referred to as sovereign bonds. Read more…

Bonds

Bond Pricing

Bonds can be bought from different sources and their prices can also vary accordingly. There could be multiple factors behind pricing of a bond.

Bonds

What are Bonds

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 Read more…