Price and Access Matter

Unlike stocks, bonds in the secondary market usually do not trade in a centralized auction environment.  Instead, they are generally purchased from a broker’s inventory.  The size of an order can have a strong influence on the execution price of the trade which in turn impacts a bond’s yield.  As an institutional investment manager for community banks we trade bonds in quantities large enough to obtain favorable pricing compared to a typical “retail” order.  Our individual clients are then able to benefit from trades at prices not likely obtainable on their own, and all of our clients benefit from HFM’s decades of experience and relationships with multiple bond sources.