Automated Bond System - ABS

DEFINITION of 'Automated Bond System - ABS'

The electronic system on the NYSE that records bids and offers for inactively traded bonds until they are canceled or executed.

BREAKING DOWN 'Automated Bond System - ABS'

Because the bid and ask prices of inactively traded bonds aren't constantly changing due to demand and supply conditions, investors looking for a quote may have difficulties. By having all inactive bonds electronically monitored, the NYSE is able to keep a good inventory of bond prices, just in case an investor is interested in purchasing them.

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RELATED FAQS
  1. What is the risk of holding a bond trading at a discount until maturity?

    Let’s say a corporate bond who was quoting 95 is now quoting 70 because of increased fear regarding the company. The ... Read Answer >>
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  3. Do long-term bonds have a greater interest rate risk than short-term bonds?

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  4. How does face value differ from the price of a bond?

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