Corporate Bond Brokers
Corporate bonds are IOUs issued by private and public corporations to raise capital. Corporate bond promises to pay back your entire principal amount along with interest. They offer higher interests than government or municipal bonds.
Anyone in need of corporate bonds can seek the guidance of corporate bond brokers. Corporate bond brokers are experts who assist people in finding corporate bonds that best fit their needs. They act as agents in buying and selling corporate bonds. To be active in trading bonds, brokers have to pass an exam and have to register with the National Association of Securities Dealers (NASD). By keeping in touch with different bond dealers, corporate bond brokers help their clients to find the best prices for their bonds.
With the guidance of a licensed or registered bond broker, buyers and sellers can easily find a corporate bond with a lower rating and good rate of return. In exchange for their service, they receive commission from their customers. Instead of charging commission, certain brokers make money by increasing the markup value of bonds. The markup value and commission vary greatly depending on the size of the transaction and the type of bond you trading.
Certain brokers work with bond firms while some others work as individual brokers. All of them offer different levels of service and provide immediate access to the type of bond that you are interested in. Cantor Fitzgerald is one of the leading companies in the U.S that specializes in bond trading.
One has to consider several factors while choosing corporate bond brokers. Prior to seeking guidance of corporate bond brokers, it is important to make sure that they have proven their success in corporate bond trading. Make sure that they have education, experience, and necessary credentials for corporate bond trading.
To learn more, consult with the experts at CL King and Associates. We co-manage bond offerings, IPOs, follow-ons, secondaries, convertibles, and preferred. CL King has acted as Co-Dealer Manager on Verizon’s $1.9 billion cash tender offers for 8 series of debt securities of Verizon and many such big companies.