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

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
Related Articles
  1. Trading

    Advanced Guide To The Bloomberg Terminal

    This advanced guide gives an in-depth introduction to the Bloomberg Terminal's advanced features.
  2. Insights

    How Bloomberg Makes Billions (Hint: Not Just News)

    A look at the inner workings of one of Wall Street's most secretive (yet most important) private companies.
  3. Investing

    Beginner's Guide To The Bloomberg Terminal

    Find out how to use the Bloomberg terminal computer system to trade stocks.
Frequently Asked Questions
  1. How does the number of credit card accounts I have affect my credit score?

    Your credit score, which is also referred to as your FICO score, is a measure that creditors use to assess your potential ...
  2. What is the 'three-legged stool'?

    The "three-legged stool" was a retirement terminology from the past that many financial planners used to describe the three ...
  3. If I am looking to get an investment banking job, what education do employers prefer? MBA or CFA?

    If you are looking specifically for an investment banking position, an MBA may be marginally preferable over the CFA. The ...
  4. Is a Simplified Employee Pension (SEP) IRA tax deductible?

    Learn everything you need to know about your SEP IRA, including the benefits to employers and whether or not a SEP IRA is ...
Trading Center