Brokerages offer same bond for different prices and yields

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
User avatar
Topic Author
jwblue
Posts: 281
Joined: Mon Nov 05, 2012 10:24 am
Location: Irvine, CA

Brokerages offer same bond for different prices and yields

Post by jwblue »

I thought all that is fixed no matter the brokerage.

The minimum are different as well.

Does it pay to shop around for the same bond?
hlfo718
Posts: 808
Joined: Wed Dec 01, 2010 8:17 am
Location: NYC

Re: Brokerages offer same bond for different prices and yiel

Post by hlfo718 »

usually the larger the quantity the higher the yield, or the lower your cost. This works the same for broker CDs as well. It pays to look around especially if you have more than one broker.
thx1138
Posts: 1164
Joined: Fri Jul 12, 2013 2:14 pm

Re: Brokerages offer same bond for different prices and yiel

Post by thx1138 »

Yes, shop around. The bond market is not a market in the same sense as the NYSE or the like. What price you get depends on who you are buying from and also who you are.

For treasuries the market is really more like an equities market, you should see the same most everywhere. Not for corporates or munis.
User avatar
nisiprius
Advisory Board
Posts: 52219
Joined: Thu Jul 26, 2007 9:33 am
Location: The terrestrial, globular, planetary hunk of matter, flattened at the poles, is my abode.--O. Henry

Re: Brokerages offer same bond for different prices and yiel

Post by nisiprius »

I don't think there's any centralized "bond market," and I think when you are buying from a broker, it is a specific transaction with one or another dealer they use--and different dealers offer different deals.

In the case of a noncompetitive Treasury bond purchase, though, I think everyone gets exactly the same terms.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.
Post Reply