For years, Zions Direct has been a leader in offering corporate bonds to retail customers at institutional prices. This week, Zions Direct has expanded that approach with the announcement of their first auction of secondary market corporate bonds. This innovative approach to selling corporate bonds allows retail and institutional investors to set the yield through a competitive bidding process, in contrast to the typical approach in which a broker/dealer sets the offering yield.
With the addition of secondary corporate bonds on the auction platform, Zions Direct provides individual investors another element of control in a volatile market. Moreover, customers are able to easily review and purchase these products without the traditional commissions associated with brokers and third party financial advisers.
As with all auctions on the Zions platform, bidders will be able to see, receive feedback, and ultimately help set the market clearing price in real-time. It’s a transparent and inclusive approach to pricing and selling bonds—a welcome change for many in light of the current economic environment.
In order to participate in this auction, bidders must have a Zions Direct account. The first auction will begin Tuesday, June 16, and will run for a week.
It is expected that secondary corporate bond auctions will be an ongoing and welcome addition to our auction platform. Zions Direct has conducted over 600 auctions over the last three years. To view current corporate bond auctions, go to auctions.zionsdirect.com.
Potential investors should check the auction site for more information regarding these bonds before making an investment decision.
*Artwork from felixe under Creative Commons license at Flickr.com.