Here are some websites for Canadian bond prices.
bondtradedata.iiroc.ca/#/search ,wholesale prices, 2 day delay
stockwatch.com/Quote/Candeal.aspx wholesale prices from Candeal, 1 day delay
candeal.ca/bond-quotes , wholesale prices, same day
pfin.ca/canadianfixedincome/Default.aspx wholesale prices, same day
gold.globeinvestor.com wholesale prices, 1 day delay, subscription needed, has quotes on most bonds
questrade.com/bonds retail prices on bonds
I have been told by a discount broker that a built in commission of about 1% is built into the ask price and similarly into the sell price. That means that in a low interest environment, about one year of interest income is consumed by the transaction cost. A rather large amount, I think.
In the post above, Questrade claims "zero commission".
What is going on?
Last edited by stantistic; 2017-02-25 at 05:37 PM.
Need an exchange where those trading are members of the exchange
BMO Investorline (and likely other major on line brokerages) quote prices and yields on all bonds they have available. They also show what the brokerage fee will be if you go ahead with the purchase. In the past that fee was "hidden" and only reflected in the difference between buy/sell.
The prices on Questrade already include commission. I looked at a few bonds to compare price. Canadian Natural 2019-12-03 2.6%,Candeal has a ask price of 101.9, BMO investorline has a price of 102.53 , Questrade 102.7, Scotia Itrade 102.47 ( all of these have commission included). On higher yield bonds the spreads are going to be larger from the ask price. Ie Aimia 2019-05-17, I am getting a ask price of 102.98 and the price quoted by Questrade is 105.46.
Typically when I am buying a bond that is not on the brokers bond list I will pay approx. 1.5 more than the ask price. ie if the ask price is 101.5 I would pay 103 including commissions.
Sorry about the large font and space in post 2.
I don't have the computer skills to fix it.
I just checked BMOIL but could not find that Can Nat bond listed. Checked another bond with similar yield and maturity and found commission was $5.00/$1000 up to 20,000 and $4.00/1000 for above that (only looked at 20&30). The commission is included in the quoted price, but if you click to buy, it gives you the breakdown of the order including commission and accrued interest.
Originally Posted by Brin68
I'm new to bonds. When you buy individual bonds do you need to basically hold them to maturity like a GIC?
I was checking out a bond on TDI today, and it seemed like a very wide spread.
This quote was after hours so during open market hours I suppose the spread could be better?
CORP MORC 4.099 12/10/18
628 days to maturity
Ask Price 103.691 Ask Yield 1.90244
Bid Price 102.474 Bid Yield 2.61421
Some bonds (like government bonds) are liquid and you can buy or sell them any time. Other bonds, most corporates, have limited liquidity. You don't have to hold a bond to maturity, and you can sell it back. But with the poor liquidity of corporates (as you saw there with the bid/ask) you may not want to try selling it.
I hold a government bond portfolio and these are liquid. No problem at all buying and selling them before maturity.
But if you're investing in corporates you're probably better off in a bond ETF. For example short term corporate bonds are easily done with VSC
1 year performance: 2.77%
3 year performance: 2.50% per year
It would be interesting to compare different brokers to see who's got the best bond prices!
@james what stats are you looking at to determine how liquid a given bond is? For stocks we'd look at the daily average volume. With bonds I assume we trading to/from the broker, our order doesn't go to an open market exchange?
for example TD Webbroker shows the offer quantity of 531,000 for a Toronto muni.
Here's a few other page with some useful rates:
https://ca.investing.com/markets/canada Click on the bonds tab. It has a nice Yield curve and links to all the different GOC bonds. Each one has nice chart that can even show intraday changes. For example: