How to sell bonds

How to sell bonds

Bonds are securities for which the owner at the specified moment receives their nominal value from the issuer in a monetary or other property equivalent. In other words, buying bonds, you become the creditor of the issuer. In each individual case, there is its most optimal duration of the sale of bonds, allowing you to get the maximum profit from investments.

1
Income from bonds is a stable and convenient source of passive savings, so the owner of the securities can wait for the expiry of the maturity of papers, and not sell them. In this case, it is necessary to recognize the risk of inflation that can touch bonds. First of all, it concerns long-term bonds for 5-7 years. Sevective coupons or discount bonds (with a zero coupon for which the percentage is not paid) reduce inflationary risks.

2
There is a possibility of early repayment of bonds, which is indicated in the securities themselves. Often the debtors themselves become the initiators of ransom earlier, as they are unprofitable to pay interest.

3
Some bonds can be converted into stocks. When exchanging the owner of the shares is deprived of interest payments, as it becomes co-owner of the company, and cash is sent to its development.

4
Bonds can be deposited, for example, apartment securities from the developer. They are provided with square meters, they can be sold exclusively through the stock exchange, pre-warning the developer.

5
Sell \u200b\u200bsimple bonds are quite easy: you need to give the appropriate disposal to the broker or set them for sale using the Internet. If the bidding on your securities have been held for a long time, then be prepared for delays on sale.

6
Bonds with interest payments can be sold at prices above or lower in comparison with the nominal. These securities decreases the cost with increasing deposit interest rates in well-known banks. At face value, recently released bonds are most often sold.

Passive income provided by securities is very attractive, so selling bonds is easy. Evaluate inflationary risks and without having no need to take your place.

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