I have had one experience with individual bonds -- and it may be atypical. A few years ago, we had to sell one (a large one, so it may have been several smaller ones, I really don't recall) held by a client. (He could not accomplish the sale himself from his new secure government provided residence). It was nearly impossible, as I recall, to find a reliable "market" quote for the bond. We ending up shopping the sale to a variety of brokers and prices were very different from one place to the next.
This may be common knowledge, but it came as a surprise to me (at least with respect to the extent of price markdown) to learn that brokers usually trade bonds with you for their own account. Thus, when you buy, you pay a price set buy the broker based on how much they think they can get you to pony up. The same thing when you are selling: the price you get is not the price they sell it for -- they markdown the price they offer and build in their profit into the bond price rather than just charge a commission and act as a broker.
I understand that brokers sometimes buy and sell from their own accounts, but the price differentials in this instance were several thousand dollars.
Troy
Those who shoot from the hip usually end up just shooting themselves.
Plan the grub and grub the plan.
Where is the party tonight? Who is bringng the drinks?
