Canadian Money Forum banner

Fixed Income Resources

2379 Views 2 Replies 3 Participants Last post by  leslie
I have a number of blogs that I follow on Dividend Investing, Preferred Shares, and general equity topics. I am looking for recommendations regarding blogs or resources that concentrate on fixed income investing and topics, preferably Canadian.
Part 2 of my "ask" is, given I want to purchase bonds (not bond funds) as a retail investor, where is the best venue to buy corporate bonds at the best cost? I am currently using Scotia ITrade and they have a reasonable inventory but when I compare pricing with Canadian Fixed Income lisitings on Perimeter, pricing seems higher?
1 - 3 of 3 Posts
I don't think that there are any blogs on the topic that I can recommend.

Part 2 of your question is difficult. Since bonds trade in the OTC (over-the-counter) market, and bond dealers don't have to publish any public information, price data for the bond market is hard to find. Each of the major brokerages has a bond dealing business, but they will likely only advertise the bonds in which they are making a market. The reason why the prices at your broker's bond dealer are worse than the prices on Perimeter is because the bond dealer trades on the basis of a bid-offer spread. The prices on Perimeter appear to be averages.

As for which broker has the lowest bid-offer spreads on bonds, your guess is as good as mine. Economic theory would suggest that in a perfect market, each bond dealer's spread for a given bond issue would be identical. The retail bond market is not exactly perfect though; I wouldn't be completely surprised if there was a degree of collusion between bond dealers at the retail level (at the wholesale or inter-bank level though, I would expect the market to be a lot more competitive). In any case, my gut feeling is that each broker is more or less the same when it comes to their bond dealership business.
See less See more
I don't think any of us can answer that question because all the bond information is hidden from all but broker clients (I'm pretty sure - haven't tried for all brokers). There is no way we can comparison shop.
1 - 3 of 3 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.