What is bond holding What is the role of bond generation holdings

There may be a lot of novice investors who do n’t know what bond holdings mean and what role they hold. Then I ’ll bring you a brief introduction on bond holdings below. Take a look at bond holdings. And what is the role of bond holdings.

Bond holdings profile

Bond holding refers to the business of asking others to hold bonds on their behalf through transactions that do not transfer substantial ownership in the interbank market.

Bond holding role introduction

In terms of specific operations, bondholders reached an verbal agreement with the agent through inter-bank transactions, agreeing to transfer the underlying bonds to the agent at a certain price, and then redeemed by the bondholder at a predetermined price after a certain period of time. return. The bond holders retain the risks and rewards related to the substantial ownership of the bonds by paying the capital use fees during the holding period of the holding party; the cost of the right to use the funds obtained by the holding party during the holding period is included in the agreed redemption price . The annualized yield of bond trading spreads is basically the same as the repo rate over the same period. In order to achieve a win-win business. Therefore, from the perspective of the willingness and content of the transaction between the two parties. In essence, the bond holding business is an act similar to bond repurchase or pledge financing, which is achieved verbally, and achieves the purpose of enlarging the scale of assets and increasing the leverage of investment.

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