How to Purchase Corporate Bonds Without a Broker
- 1). Purchase bonds on the primary market. The primary market represents new issue bonds. Everyone who buys a new issue pays the same price. It is difficult to purchase new issues as a small investor. These usually go to other banks, mutual funds or investors with pricey full-service investment accounts. However, if you have one of these accounts, ask your broker to include you in the next primary bond market announcement.
- 2). Look up the pricing for the offering you are interested in. Look up current bond prices in the Wall Street Journal or Investor's Business Daily. Both of these can be found at your local library or bookstore.
- 3). Contact the Investor Relations department of the company for which you would like to purchase bonds. Ask them when the next issue is and who the investment bank was on the last deal and the upcoming deal. They should tell you one, if not both.
- 4). Sign up for an investment account with one of the institutions helping the company to do the bond offering. Most investment houses require a minimum balance of $100,000, but it will buy you access to secondary and sometimes primary bond offerings for both stocks and bonds.
- 5). Place an order for the dollar amount of bonds you would like with your investment adviser through the account.