Latest / How Canadian Markets Work
Episode 46: How Bonds Actually Trade
Got something to say to this podcast? Send a voicemail, and you might hear yourself on the next episode!
Episode Summary Why does buying a stock feel so transparent while buying an individual bond feels like you are being shown a single, unverified price? The answer lies in the fundamental structure of the fixed-income market. This episode explores the "variety problem" that prevents bonds from trading on public auctions, how dealers act as market makers, and why retail investors pay an invisible premium that can quietly consume an entire year of yield.
Key Concepts
The Variety Problem…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.