bond market fundamentals
Educational articles in this subcategory.
Day-Count Conventions and Settlement Cycles
Using the wrong day-count convention on a $100,000 corporate bond position creates **$200-500 in calculation errors**—small individually, material whe...
Callable, Putable, and Convertible Bonds
Embedded options transfer risk between issuers and investors. When you buy a callable bond, **you're short an option you didn't price**. When rates dr...
Reading Bond Quotes and Price Conventions
Misreading a bond quote costs real money. Confuse clean price with dirty price and you pay **$15-25 more per $1,000 face value** than you expected (th...
Treasury vs. Corporate vs. Agency Markets Overview
**Beginner** | Published: 2025-12-29 ## Why Market Segment Selection Matters The US bond market totals **$58 trillion**, but that number obscure...
Who Trades Bonds? Dealers, Platforms, and Investors
Retail investors pay **0.5-1.5%** in transaction costs on typical bond trades. Institutions pay **0.05-0.15%**. That's a **5-10x cost disadvantage** b...
How Credit Ratings Are Assigned at Issuance
Rating agencies predicted the 2008 financial crisis with stunning inaccuracy: **over 36,000 structured finance tranches were downgraded** in 2007-2008...
Understanding Bond Indentures and Covenants
The fine print in your bond investment determines whether you recover **72 cents** on the dollar in default or just **61 cents**. That **11-percentage...
Primary Issuance vs. Secondary Trading Workflows
Where you buy bonds matters more than most investors realize. Purchasing in the **primary market** (new issuance) versus the **secondary market** (exi...
What Is a Bond? Coupons, Par, and Accrued Interest
Buying a bond between coupon dates without understanding accrued interest means you pay **more than the quoted price**—often $125-250 extra per $10,00...
Coupon Types: Fixed, Floating, and Step-Up
Choosing the wrong coupon structure in a rising rate environment cost fixed-rate holders **15-20% in 2022**—while floating-rate investors lost less th...
Coupon Types: Fixed, Floating, and Step-Up
Coupon structures define a bond’s cash flow profile and risk-reward tradeoffs. For institutional investors, selecting between fixed, floating, and ste...
Yield Spreads and Benchmark Selection
Yield spreads are the lifeblood of fixed income analysis, quantifying the extra return demanded for taking on additional risk. A 150 bps spread on a B...
Odd-Lot Trading and Liquidity Considerations
In fixed income markets, liquidity is both a currency and a constraint. Unlike equities, bond transactions often occur in over-the-counter markets whe...
Treasury vs. Corporate vs. Agency Markets Overview
Bond markets represent over $40 trillion in global assets, yet institutional investors face a persistent tension: balancing yield potential against cr...
What Is a Bond? Coupons, Par, and Accrued Interest
Bonds anchor institutional portfolios, yet their cash flow structures create persistent workflow tensions between yield optimization and risk manageme...
How Credit Ratings Are Assigned at Issuance
Credit ratings at issuance function as both a market calibration tool and a regulatory requirement, directly influencing a bond’s yield spread, liquid...