Understanding Bond Pricing - Fidelity Investments
Understanding Bond Pricing
By better understanding bonds, you can more confidently use them to strengthen your portfolio.
2 Copyright 1998-2017 FMR LLC. All Rights Reserved.
Develop an Ongoing Strategy with Fidelity
3 Copyright 1998-2017 FMR LLC. All Rights Reserved.
Education on securities
Resources to help inform and assist you in managing your assets
Insights for helping you make more prudent and informed decisions
Common Questions
1
How many of you currently have bonds in your portfolio?
2
Ever wonder why it's harder to get a bond quote than a stock quote?
3
How many of you have a grasp on what you're being charged per bond trade?
4 Copyright 1998-2017 FMR LLC. All Rights Reserved.
Comprehending the Bond Market
Understanding Trading Costs
Assessing Pricing for Individual Bonds
5 Copyright 1998-2017 FMR LLC. All Rights Reserved.
Today's Agenda
Makeup
Understanding the
Size
Bond Market
6 Copyright 1998-2016 FMR LLC. All Rights Reserved.
Volume
The Makeup of the Bond Market Varies from the Stock Market
Makeup
Size
Trading marketplace
Pricing transparency
STOCK MARKET
Equity shares of publicly owned companies
Limited to size of shares offered by companies
Centralized (Ex. NYSE or NASDAQ)
Generally transparent and liquid
BOND MARKET
Debt securities issued by corporations, governments, government agencies, municipalities
Relatively small and large debt instruments
Fragmented, bonds are traded "over the counter."
Larger issuance = more transparent/liquid Smaller issuance = opaque pricing/less liquid
7 Copyright 1998-2017 FMR LLC. All Rights Reserved.
Size
CHARACTERISTICS
Market Size1
BOND
$44 Trillion
STOCK
$46 Trillion
Daily Trading Volumes2
$848 Billion
$322 Billion
Number of Securities3
Ford (example) Outstanding4
Ford (example) Number of Issues4
1,197,000 $81 Billion 405
5,284 $37 Billion 1
1.Bonds--SIFMA, Q4 2019, Equity-World Federation of Exchanges 2. Bonds--SIFMA, Q4 2019, Equity AMEX, NYSE, NASDAQ, BATS 3. Bonds-FINRA Feb 2020, Equity-World Federation of Exchanges Dec 2019 4. FINRA--Recent 10-K filing. In general, the bond market is volatile, bond prices rise when interest rates fall and vice versa. This effect is usually pronounced for long-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss.
8 Copyright 1998-2017 FMR LLC. All Rights Reserved.
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- is there a risk premium in corporate bonds
- factors affecting the valuation of corporate bonds
- explaining the rate spread on corporate bonds
- finra bloomberg active u s corporate bond indices
- bond pricingbond pricing
- understanding bond pricing fidelity
- understanding bond pricing fidelity investments
- pre trade information in the corporate bond market
- institutional herding in the corporate bond markets
- finding a good price in opaque over the counter markets
Related searches
- fidelity investments mutual funds research
- fidelity investments financial advisors
- fidelity investments mutual funds performance
- bond pricing formula
- fidelity investments closing prices
- fidelity investments mutual funds perform
- bond pricing formula in excel
- fidelity investments best retirement funds
- fidelity investments money market fund
- fidelity investments money market rates
- bond pricing example
- fidelity investments bond funds