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. Surrender Period

    The amount of time an investor must wait until he or she can ...
  2. Treasury Direct

    The online market where investors can purchase federal government ...
  3. Treasury Yield

    The return on investment, expressed as a percentage, on the debt ...
  4. Collateralized Loan Obligation - CLO

    A security backed by a pool of debt, often low-rated corporate ...
  5. Residential Mortgage-Backed Security (RMBS)

    A type of security whose cash flows come from residential debt ...
  6. Fixed Income Forward

    A contract to buy or sell a fixed income security in the future ...
  1. How do I implement a Forex Signal System into a forex trading strategy?

    Learn how traders use different types of forex signal systems such as trend-based or range-based to create or supplement ...
  2. How do you know if a trade placed to a broker is confirmed?

    Learn how to check if trades placed with brokers online or over the telephone have been filled and confirmed. Explore different ...
  3. What determines the price of a bond in the open market?

    Learn more about some of the factors that influence the valuation of bonds on the open market, and why bond prices and yields ...
  4. Why should I keep records on my tax-exempt bond transactions?

    Keep your purchase records on all investments, including tax-exempt bonds. Though the interest is tax-free, you may owe taxes ...

You May Also Like

Related Tutorials
  1. Bonds & Fixed Income

    Investing For Safety and Income Tutorial

  2. Bonds & Fixed Income

    Certificates Of Deposit

  3. Trading Systems & Software

    Beginner's Guide To J-Trader

  4. Trading Systems & Software

    Beginner's Guide To CQG Integrated Client Trading Platform

  5. Trading Systems & Software

    Guide To Smartphone Forex Apps

Trading Center