Corporate Bond Dealers

In the bond trading business, a few specialized market makers become registered in the SEC (Securities Exchange Commision).

These bond dealers are responsible for providing liquidity to the bond market, by becoming the last resort buyers and sellers.

Corporate Bond Dealers buy these security instruments from their own clients, or from other bond dealers.

The main task of a bond dealer, thus, is to introduce liquidity in the market. This is important, especially in events when there is uncertainty in the market. Bond dealers have the responsibility to keep an ordered market for bond trading.

Bond dealers may specialize in selling bond for a specific type of companies. Sometimes, they may provide bonds for even a single company.

The main goal of corporate bond dealers is to maintain a very liquid market for the bonds for which they are responsible. They will do this in exchange for receiving the difference between the sell and buy price in any bond-related transaction.

Bond securities are part of the complex financial instruments used by companies. They are a big part of the market for financial securities in the US.

Tags: finance, broker, dealer, bonds, bond, dealers
Article created on 2010-08-17 21:21:26

Post a comment