How To Analyze Corporate Bonds With Bloomberg Terminals: Trading Bonds On Bloomberg
AAA
  1. How To Analyze Corporate Bonds With Bloomberg Terminals: Introduction
  2. How To Analyze Corporate Bonds With Bloomberg Terminals: Analyzing Corporate Bonds
  3. How To Analyze Corporate Bonds With Bloomberg Terminals: Valuing Corporate Bonds
  4. How To Analyze Corporate Bonds With Bloomberg Terminals: Trading Bonds On Bloomberg
  5. How To Analyze Corporate Bonds With Bloomberg Terminals: Conclusion

How To Analyze Corporate Bonds With Bloomberg Terminals: Trading Bonds On Bloomberg

The Bloomberg system allows users to electronically trade bonds with each other but to do so requires users to have counterparty clearing agreements and these may be difficult or impossible to establish for an individual investor. However, even if you don't actually use Bloomberg to execute orders, you'll still find the system helpful with the other stages of the trade process.

In addition to the tools Bloomberg offers for analyzing, valuing, and comparing corporate bonds, the system also provides many functions for monitoring bond prices. Each user has their own unique preferences for which market monitor they prefer, but one common screen is accessed by typing <PX1> into the terminal. This screen provides constant updates on the Treasury bond market, which ultimately drives movements across all segments of the bond market. You can also use this screen when purchasing bonds on a "spread" basis in order to assure that the Treasury yield your corporate bonds are being priced off of is accurate.



Bloomberg can also be used to manage a portfolio of corporate bonds (as well as other investments.) The portfolio management functions can be accessed by typing <PORT> into the terminal. You can build a portfolio by entering your holdings into the system and Bloomberg will continuously update your portfolio by supplying indicative market prices for each of the bonds that you own. Alternatively, you can input your own "market prices" into the system. Either way, you'll have an ongoing record of your profit and loss (P&L) for each individual position, as well as for the portfolio as a whole.

The system also offers a variety of reports for analyzing your portfolio. For example, you can use Bloomberg to view your portfolio by industry or geographic concentration in order to ascertain whether or not you're properly diversified. You can also run cash flow reports to see when you will receive principal and interest payments from your bond portfolio.

How To Analyze Corporate Bonds With Bloomberg Terminals: Conclusion

  1. How To Analyze Corporate Bonds With Bloomberg Terminals: Introduction
  2. How To Analyze Corporate Bonds With Bloomberg Terminals: Analyzing Corporate Bonds
  3. How To Analyze Corporate Bonds With Bloomberg Terminals: Valuing Corporate Bonds
  4. How To Analyze Corporate Bonds With Bloomberg Terminals: Trading Bonds On Bloomberg
  5. How To Analyze Corporate Bonds With Bloomberg Terminals: Conclusion
RELATED TERMS
  1. Accelerated Return Note (ARN)

    A short- to medium-term debt instrument that offers a potentially ...
  2. Coupon Rate

    The yield paid by a fixed income security. A fixed income security's ...
  3. Coupon

    The interest rate stated on a bond when it's issued. The coupon ...
  4. Bond

    A debt investment in which an investor loans money to an entity ...
  5. Next Generation Fixed Income (NGFI) Manager

    A Next Generation Fixed Income (NGFI) manager is a fixed income ...
  6. Next Generation Fixed Income (NGFI)

    Next generation fixed income is an innovative approach to investing ...
  1. Why would a company use a form of long-term debt to capitalize operations versus ...

    Learn about the different consequences of using long-term debt versus equity to raise capital for business activity, and ...
  2. Where can I find year-to-date (YTD) returns for benchmarks?

    Discover which financial data providers publish year-to-date benchmark performance. Find out which websites provide YTD price ...
  3. What is the effective interest method of amortization?

    Find out more about the effective interest rate method and how the effective interest method is used to amortize a discounted ...
  4. How do I evaluate a debt security?

    Look at a brief overview of the important factors to consider before purchasing a debt security, such as a corporate or government ...

You May Also Like

Related Tutorials
  1. Bonds & Fixed Income

    Investing For Safety and Income Tutorial

  2. Bonds & Fixed Income

    Certificates Of Deposit

  3. Retirement

    Analyzing The Best Retirement Plans And Investment Options

  4. Trading Systems & Software

    Beginner's Guide To J-Trader

  5. Trading Systems & Software

    Beginner's Guide To CQG Integrated Client Trading Platform

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!