Active Bond

Posted in Finance, Accounting and Economics Terms, Total Reads: 1231

Definition: Active Bond

These are the bonds that are traded on the New York Stock Exchange(NYSE) actively. 

Thus these bonds have following features:

• Traded in high volumes

• Traded in high frequency

Due to the above, active bonds are an attractive choice for the investors because their price is largely unaffected by the trade volume. Also, these bonds may be employed as safe investment or diversification.

These bonds are traded by active bond crowds, who are traders that buy or sell bonds that are frequently traded. Due to the higher liquidity of active bonds, active bond traders sometime dictate bond prices.

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