Municipal Bond Forum

Selling bonds

Q

I’m looking for simple yet specific education on selling bonds purchased through a firm like yours. Mellon Bank or any other fiduciary can hold bonds. How do I sell them? Is there a ready market? Do I use an intermediary such as your company? What are the costs? Are these readily marketable compared to stocks?

B.C., Texas

A

James A. Klotz responds:

Yes, there is a ready market to sell any general market bonds purchased
from our firm or any other bond dealer.

Yes, you would require a brokerage firm to execute the transaction.

If you choose to sell your bonds through our firm, our bid price will be net to you. There are no additional costs or fees.

NYSE stocks would be considered more marketable because they trade on an exchange. Muni bonds, on the other hand, trade over-the-counter.

Feb 7, 2011

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