Fixed Income Online
- What is Fixed Income Online?
- What am I paying in commissions when I buy and sell fixed income products?
- Why do the prices and yields change when I change my order quantity?
- What is accrued interest?
- What about exchange traded debentures?
What is Fixed Income Online?
As a BMO InvestorLine client you can buy and sell Canadian or US dollar-based fixed income products online. Start by searching through one of the largest online bond inventories for the fixed income product that meets your investment criteria. Choose amongst various types of fixed income products including federal, provincial and corporate bonds, strip coupons and residual bonds, T- Bills, commercial paper and bankers' acceptances.
What am I paying in commissions when I buy and sell fixed income products?
In fixed income trading, the industry standard is to build commissions into the price. With Fixed Income Online, you can browse through our inventory at your leisure and check out our competitive offerings.
Why do the prices and yields change when I change my order quantity?
Our prices and yields vary depending on the amount being purchased. In general, the larger the purchase amount, the better the quoted price and yield.
What is accrued interest?
Accrued interest is the interest that has accumulated on a bond since the last interest payment date. In calculating the total cost of a bond purchase, the purchaser must pay the accrued interest until settlement date. The purchaser then receives the full interest on the bond at the next interest payment date. Conversely, when one is selling a bond, the seller will receive the accrued interest as part of the total value of the trade.
What about exchange traded debentures?
At present, exchange traded debentures are only available through a BMO InvestorLine representative. The commission is a minimum of $35 plus $1 per bond (1 bond is $1000 face/par value). For example, 50 bonds or $50,000 face value of a bond would result in the following commission: $35 plus $50 = $85.
