There is not one large organized exchange
where bond buyers and sellers trade.
Not exact matches
As a result, traders are turning to
bond futures,
where having more
buyers and sellers makes entering and exiting positions easier.
A huge number of sellers would be pouring into a market with a dearth of
buyers, setting up a scenario
where bond prices cascade and yields explode.
I've seen a big seller who needed to sell a big position in a junk
bond issue force the market down 40 points in order find a level
where buyers would step up.
When
bond traders at the CBOT wade into the soybean pit because that is
where the «action» is (high prices and volume), then I saw the most anxious
buyer set the highest prices.
Government
bonds have typically been more sensitive to changes in U.S. interest rates, as they have a much higher proportion of foreign
buyers and sellers from countries
where local rates might be more stable or moving in the opposite direction.
We define intrinsic value as the amount that would accrue to the owners of a security if the underlying company were sold to a rational and well - informed
buyer, or the company was liquidated with the proceeds distributed to security holders, or
where the particular security sells at a price that would yield no better than a security considered ultra-safe, such as a US Treasury note or
bond» Lou Simpson
Where today's low interest rates create a potential problem is when the
buyer of that 10 year
bond today needs to sell his
bond before the 10 years is up.
But, unlike a single
bond where the
buyer can hold to maturity, i.e. the duration drops about one tear for each year of real time passing, a fund of treasuries will never mature, the duration will remain somewhat constant as new treasuries are purchased when others mature or new money comes in.
(1) Charge or receive any money or other valuable consideration prior to full and complete performance of the services the credit service organization has agreed to perform for the
buyer, unless the credit service organization has obtained a surety
bond of $ 10,000 issued by a surety company admitted to do business in this state and has established a trust account at a federally insured bank or savings and loan association located in this state; however,
where a credit service organization has obtained a surety
bond and established a trust account as provided herein, the credit service organization may charge or receive money or other valuable consideration prior to full and complete performance of the services it has agreed to perform for the
buyer but shall deposit all money or other valuable consideration received in its trust account until the full and complete performance of the services it has agreed to perform for the
buyer;
Large index ETFs, which have real - time net asset values (NAVs), have not helped this pricing problem in fixed income but, in parts of the fixed income market
where there is less liquidity (such as high yield
bonds), sourcing issues can be more difficult — particularly in a market sell - off
where buyers may not be readily available with sufficient capacity to take on
bond inventory.
Suppose a situation arose
where there were no
buyers in the secondary market for a particular ETF (such as VTI), even though there were still
buyers of the stocks and / or
bonds that underlay the ETF.
When
bond traders at the CBOT wade into the soybean pit because that is
where the «action» is (high prices and volume), then I saw the most anxious
buyer set the highest prices.