Usually when you invest in fixed interest securities there are no fees disclosed. Your broker or dealer quotes an ‘all-in’ or ‘net’ price that includes their fee or margin. So you don’t really know how much you are paying to deal.
And how do you know what the market price of the security is in any case? Fixed interest products are mostly traded away from an exchange so investors are often forced to rely on their bank or broker to tell them where the market is. This is problematic for compliance reasons as well as financial reasons.
It doesn’t make sense to get your market pricing information from the same company that is selling you the product. The potential for getting the wrong information on price is obvious. You need independently sourced information that you can use to negotiate confidently with your dealing broker or bank.
READERS OF YIELDREPORT have access to prices on a huge range of bonds and other yield securities. Because we are independent of any financial institution and don’t offer a dealing service, you can rely on our pricing and commentary on hundreds of products to support your investment decisions and assist you in dealing confidently with your bank or broker.