Bonds

 

Bonds Trading Conditions

Commissions​

Bonds are traded with the following commission on buy and sell (of total value):

​Commission​Minimum
​0.08%​EUR 80

Target Spreads​

For most bonds, in particular corporate bonds, bid and offer prices are not public available and transparent, as the majority of trading takes place outside regulated marketplaces. Bonds are traded OTC with Saxo Bank as counterpart, and OTC trading conditions apply. Please see Saxo Bank's execution policy for further information.

Bond typeExpected Rating​Commission​Target spread​Example bid/ask​
Corporate Bonds (Investment Grade and short maturity) and Developed Markets Government Bonds​​Higher than BBB​8 bps.​20-80 bps.​98.00/98.80​
Corporate Bonds (High Yield) and Emerging Markets Government BondsLower than BBB8 bps.​80-200 bps.102.50 / 104.50
Hybrids and CoCo bonds 8 bps.50-250 bps.​70.00 / 72.50​
 

The target spreads as indicated above are minimum spreads and based on normal market conditions for the mentioned bond categories. Actual and realized spreads depend on individual market and liquidity conditions, and may differ from the above, even within same bond category and for the same issuer. The client is always quoted both the bid and ask price, thus the actual spread for every trade is known. Clients can accept the quote and request for trade. All quotes on request are indicative and subject to market and liquidity conditions.

Minimum Trade Size

The minimum trading size for each bond trade accepted by Saxo Bank is nominal EUR 50,000 or the equivalent in other currencies.

​Using bods as collateral for margin trading

Saxo Bank allows bonds to be used as collateral for margin trading (with Forex, CFDs, Futures or Contract Options). The collateral value available for margin trading depends on the rating of the bond, as outlined below:

​Definition​Margin Collateral
​Highest Rating (AAA)​95%
​Very High Quality (AA)​90%
​High Quality (A)​80%

Lower rated bonds will not be accepted as collateral for margin trading. If you are unsure about the collateral value for a specific bond position, please send an email to fixedincome@saxobank.com or contact your account executive.

Coupon Payments

Coupon payments from bond positions will be credited to the client’s account less withholding taxes (if any applicable).

See our Custody fees for bonds on the general terms page, section about Fees​

Saxo Capital Markets South Africa is an authorized Financial Services Provider and regulated by the Financial Services Board, registration number 40983. Registered address: The Place, 1 Sandton Drive, Sandown, Johannesburg, South Africa.  

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