trade corporate bond in IB

Discussion in 'Trading' started by stevenw, Jan 3, 2008.

  1. stevenw


    Anyone trade corporate bond in IB? it is complex, especially how to transfer/receive accured interest?
  2. Trade bonds, or buy and hold bonds?

    Buy and hold is very easy, they automatically deposit interests on your account, altough exact coupon (dividend) dates vary, even among the same bonds, depending on date they were issued.

    To transfer interest earned, you just pay a wire transfer. Be aware that IB charges inactivity (no trading) fees, so it may not be the best broker for bonds.

    Trading bonds is not recommended. Their bid-ask spread is huge, liquidity is low.
    Forecasting interest rates is very hard to do, and those who do speculate mainly with T-Bonds/Bills because of their much better liquidity.

    Hope this answers your question.