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Definition of 'Bond Broker'
A broker who executes over-the-counter bond trades between institutional investors (bond traders). Bond brokers act as an intermediary between institutional investors to keep the identities of the other parties anonymous. Brokers communicate with traders on telephone and over the internet to obtain quotes from both parties.
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Investopedia explains 'Bond Broker'
Though bond brokers play a key role in maintaining the anonymity of buyers and sellers in the bond market, as computer systems advance, some of these duties will become obsolete. As for now, human interaction still plays an important role. Bond brokers make money off the spread at which they exchange bonds between traders, and take little risk in the process, since brokers do not hold long or short positions in bonds.
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They may not be sexy, but bonds do have a place in every balanced portfolio. Find out why.
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Reducing risk and increasing returns in your portfolio is all about finding the right balance.
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Learn the complex concepts and calculations for trading bonds including bond pricing, yield, term structure of interest rates and duration.
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