Institutional Bond Trading - How To Sell Government Bonds as a Broker

Many brokers who enter the securities business are not in the stock market. They are in the bond market. Bond Brokers sell Government Securities and large (Jumbo CD's) to Institutions and help mange their portfolios. These brokers sell to Banks, Credit Unions, Trust Departments and other Institutions.

The pay off can be very rewarding and ongoing. Learning how to get in with these large customers is the key. The product is not difficult. But the Ebook below through American Investment Training will cover the types of securities these institutions buy. There are many types of bonds that these large clients do not buy.

One huge benefit to being a Bond Broker is the fixed maturity of Bonds. They have an end date. A maturity date - unlike stocks and other equities, so the re-investment aspect of rollover money allows a Bond Broker to make repeated money on the same amount each time bonds mature.

SAMPLE FROM THE "HOW TO SELL BONDS TO INSTITUTIONS" E-BOOK regarding CD's:

"Banks and other institutions buy CD’s offered by other banks. If you have banks that buy CD’s, and you have a bank that needs money, you can earn from that. Lets say your investing bank is looking for a 3% 5 year CD (don’t be alarmed by the low rates, as of this printing, interest rates are at all time lows), The bank that is looking for money is offering a rate of 3.25%. You can approach the deposit bank with providing them a $100,000 deposit, not to exceed their total cost of 3.25%. You ask them if they pay for deposits, if they do, you tell the bank to issue the CD to your bank at 3%, and then you bill the deposit bank the .25 point spread between their cost and the CD rate you are giving to your customer. A .25 point for a 3 year CD is $750. What if you had 10 banks interested in 3 year CD’s? That’s $7500. Your client banks would wire the money in.

Each deposit is fully insured, the bank sends them a receipt, and your done. You also could do this with banks that are not as loaned out, but are looking to make a spread between their deposit rates, and a higher fixed income investment that you have. Let’s say there is a 4% corporate bond for 3 years that is available, and the deposit bank is paying 3.25% for 3 year deposit CD’s. If you can provide the bank with a CD at a total cost of 3.25%, and then take that money and invest it in a corporate bond, you made a spread for the bank, and you made money on both ends. The deposit spread, and the mark up on the corporate bond trade. These kinds of trades are simple to present and execute. The one objection you will encounter from some is the bank does not accept “Brokered Deposits”. Brokered Deposits are large time deposits that are listed as “brokered”, meaning, it was arranged through a broker. Some banks only consider deposits as brokered if they pay a fee for the deposit."

This guide also covers:

Institutional Bond Trading
Institutional Bond Network
Institutional Bond Sales
Who Sells US Savings Bonds
How to Sell Us Bonds
bond broker salary

Bond Brokers Trade in amounts of $250,000 - $500,000 - up to several or tens of millions! And these are normal trades in that market. You can be dealing with these trades within your first months trading bonds.

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How To Sell Bonds To Institutions