Not exact matches
Find out why negative interest rate policies are failing because
bond buyers do not
want a negative yield and saturated borrowers
want to pay off debts.
Our fixed income specialists can also research
bonds that best meet your needs or help find a
buyer who
wants to purchase the
bond you're selling.
That's because
bonds trade over-the-counter (OTC):
Buyers and sellers negotiate
bond prices privately, meaning it can be tough for an investor to find the
bonds they
want to buy, or get a price for the
bonds they
want to sell.
A
buyer of your
bond will now
want a greater potential profit to reward him for the greater perceived risk of default.
If an investor sells his
bond today, the
buyer will
want an interest rate higher than the original 6 % to compensate for the extra risk.
As a
buyer or seller of a
bond you need to acknowledge and accept the decision of whether the bid (offer to buy) or ask (offer to sell) is suitable for your current position; Do you
want to buy or sell at the price being offered?
Liquidity risk is the risk that you won't find a good price for your
bond when you
want to sell it — because there are so many more
bond issuers than stock issuers, and because
bonds are not exchange - traded, there may not be a willing
buyer.
But if you
wanted to sell your
bond on Friday, no one's going to buy unless unless the
buyer can earn 2.335 % on her investment — the rate at which 10 - year T -
bonds closed on Friday.
Liquidity risk: if the
bond issuer's credit rating falls or prevailing interest rates are much higher than the coupon rate, it may be hard for an investor who
wants to sell before maturity to find a
buyer.
Be certain when you
want to sell your unit that all the necessary documents from the body corporate (which will be needed by the bank to approve a
bond or home loan for the
buyer) have been given to the estate agent as soon as he starts marketing the unit so that unnecessary delays in the sales process can be avoided.
Whether you're a first - time
buyer, a property investor or
wanting to switch your
bond, you'll have a very different experience from the moment you start talking to us.