Investing in Fixed Income New Issues
TD Ameritrade offers a variety of new issue fixed income products to help you pursue your financial goals. Certificates of Deposit (CDs) can be purchased online and orders for Treasury auctions can also be entered online.
Investing in fixed income new issues provides certain potential benefits:
- You gain the opportunity to purchase corporate or municipal fixed income products that may be difficult to acquire in the secondary market.
- You gain the benefits of pricing clarity. For example, new issue corporate bonds are usually offered at a par amount of $1,000 per bond. In the secondary market, it will often trade a premium or discount.
- There may be tax advantages. At maturity a new issue bond will not incur capital gains or losses. Secondary market bonds may have more complicated tax consequences (Please consult with your tax advisor).
- There may be other advantages associated with specific fixed income new issues, such as greater liquidity and low underwriting fees.
Discover more about CDs and other investments.