What exchange do corporate bonds trade on?

Most corporate bonds trade in the over-the-counter (OTC) market. The OTC market for corporates is decentralized, with bond dealers and brokers trading with each other around the country over the phone or electronically.

Are corporate bonds traded on the NYSE?

Designed to provide investors easy access to transparent pricing and trading information in today’s debt market, the NYSE bond market structure offers corporate bonds including convertibles, corporate bonds, foreign debt instruments, foreign issuer bonds, non-U.S. currency denominated bonds and zero coupon bonds, as …

Why bonds are traded over the counter in the secondary market?

Bonds primarily trade OTC because of three reasons: First, there is a very large population of debt securities compared with equities. Therefore, debt markets are far less concentrated than equity markets. Second, the average size of a bond trade tends to be substantially greater than for an equity trade.

Are Government Bonds traded OTC?

Bonds trade anywhere that a buyer and seller can strike a deal. Unlike publicly-traded stocks, there’s no central place or exchange for bond trading. The bond market is an “over-the-counter” market or OTC market, rather than on a formal exchange.

How are corporate bonds traded?

Bonds can be bought and sold in the “secondary market” after they are issued. While some bonds are traded publicly through exchanges, most trade over-the-counter between large broker-dealers acting on their clients’ or their own behalf. A bond’s price and yield determine its value in the secondary market.

How stock transactions are conducted through an OTC?

Over-the-counter markets do not have physical locations; instead, trading is conducted electronically. In an OTC market, dealers act as market-makers by quoting prices at which they will buy and sell a security, currency, or other financial products.