What Is a Bond Broker? A bond broker is a broker who executes over-the-counter (OTC) and listed bond trades on behalf of investors or traders. Bond brokers act as intermediaries between buyers and sellers of debt securities, keeping the identities of both parties at the end of the transaction anonymous, and earning a commission for
What Is The Bond Buyer? The Bond Buyer is a trade publication for members of the municipal bond industry that began as a daily newspaper over 100 years ago and now provides sophisticated real-time market data via a subscription-based digital version. Key Takeaways The Bond Buyer is a trade publication for members of the municipal
What is Bond Buyer 20? Bond Buyer 20 is an index whose value is based on a survey of what municipal bond traders estimate will be the yield of a portfolio of 20 general obligation bonds maturing in 20 years, rather than actual prices or yields. Key Takeaways Bond Buyer 20 is an index whose
What Is Bond Buyer Index? The Bond Buyer Index, also known as the Bond Buyer’s Municipal Bond Index or BB40, is a muni bond index published by The Bond Buyer, a daily finance newspaper that covers the municipal bond market and tracks 40 highly-rated, long-term municipal bonds. The index is the benchmark for municipal bond
What Is a Bond Discount? Bond discount is the amount by which the market price of a bond is lower than its principal amount due at maturity. This amount, called its par value, is often $1,000. The primary features of a bond are its coupon rate, face value, and market price. An issuer makes coupon
What Is a Bond ETF? Bond exchange-traded funds (ETFs) are a type of exchange-traded fund (ETF) that exclusively invests in bonds. These are similar to bond mutual funds because they hold a portfolio of bonds with different particular strategies—from U.S. Treasuries to high yields—and holding period—between long-term and short-term. Bond ETFs are passively managed and trade, similar to stock ETFs on major
What Is Bond-for-Bond Lending? Bond-for-bond lending is a lending structure used in the U.S. Federal Reserve Bank’s security lending facility. Borrowers, typically commercial banks, receive a loan of bonds by using all or a portion of their own portfolio of bonds for collateral. The bond-for-bond lending structure is different from the Federal Reserve’s traditional cash
What Is a Block Trade? A block trade is a large, privately negotiated securities transaction. Block trades are arranged away from public markets to lessen the effect on the security’s price. They are usually carried out by hedge funds and institutional investors via investment banks and other intermediaries, though high-net-worth accredited investors may also be eligible
What Is a Bloomberg Terminal? A Bloomberg terminal is a computer system that allows investors to access the Bloomberg data service, which provides real-time global financial data, news feeds, and messages. Investors can also use the Bloomberg terminal’s trading system to facilitate the placement of financial transactions, such as stock and options trades. Bloomberg charges
What Is a Blotter? A blotter (also called a deal blotter or trade blotter) is a physical or digital record of all trades made over a period of time (usually one trading day) along with their relevant details. Key Takeaways A blotter is a detailed record of one’s trading activity and history.Clearing firms and regulatory
