I was wondering if someone could let me know if there is someplace to see the real real time bid ask spread for corporate bonds, or do I just have to trust what my broker says it is? I always assumed liquidity was extremely thin but if I see the last trade price was 89.75 and I want to unload around there I can't because my broker says the best ask is 86.75. When you are talking about 20 bonds that's a chunk of change in my world. Any info would be much appreciated! RA
tradeweb brokertec i think IB can give bond quotes pooled from different places. but bonds aren't traded like stocks so the quotes you see might only be indicatives
Interactive Brokers displays the bid/ask from NYSE or the Bond Desk. The spreads are generally terrible on all but the most traded bonds and frequently there's no bid and/or ask displayed. If you want to sell at a decent price you'll have to put in an ask price and just wait it out. As long as you have 10 bonds to sell, you've got a shot.
Interesting. I wonder why BATS or some other equity ECN hasn't created an ECN for bonds -- I'd expect that it would dramatically improve pricing efficiency in the bond market. Is there some regulatory hurdle, or is it just inertia?
I think there's just way too little volume to make it worthwhile. The big players make purchases and hold long term. There's just not that much bond trading (relative to stocks).