How to buy fixed income securities - YouTube

Welcome to our video on How to buy fixed  

income securities on the National Bank  Direct Brokerage transactional platform.  

Once you are logged into your brokerage  account you can access our fixed income section  

by clicking on our Markets tab and then choosing  fixed income from the drop down menu that appears.

You are now in the fixed income inventory  search section before we start with an  

example let's take a moment to view  the options available in this section.  

To begin with we must specify an amount to invest,  5000 being the minimum. Then we can move on to the  

different fixed income products available, from  Canadian treasury bills to municipal bonds and  

even corporate bonds one can select multiple  categories and they will appear together.

Lastly we can select the desired  maturity that ranges from 1 to 10 years,  

now once you've made your choice click on  search and all the inventory of bonds will  

be displayed before you. To the right of the  screen you can further refine the selection  

of bonds by specifying the price of the bond, by  selecting premium, close to par, or at a discount.

Here before us we have a list of the municipal  bonds to choose from one can sort the order of  

the bonds by clicking on the annual yield  or the maturity if looking for a particular  

maturity date. We can also click on price if  for example you are searching for bonds that are  

priced at a discount and lastly by the available  inventory if considering making a larger purchase.

National Bank Direct Brokerage also  offers you another viewing option  

by clicking the table view in the upper right  corner which displays all the highest possible  

current rates to maturity per fixed income  product type. I wanted to point out that for  

those looking for terms longer than 10 years you  can make the choice under this view as shown here.

Now before we go ahead with an example I wanted  to point out that the fixed income security  

price or the yield shown will vary depending  on the amount invested. Generally speaking  

the greater the amount to invest the  better the yield and the price of the bond.

Let's do a walkthrough of a bond purchase now, in  our example I'm looking to invest for a five-year  

term and looking for municipal bonds and we can  see the highest rate available is showing at 1.79  

percent. By clicking on it and then slightly  scrolling down the page we have the entire  

five-year inventory with the highest annual rates  showing up first in the page. Let's take a look at  

the second one a municipal bond from Macamic with  a coupon of 1.15%, maturing on february 9 2026  

with a current annual yield of 1.72 and the bond  is at a discount with a price of 97.43 and we  

have sufficient inventory to buy for 5000. Next  step we click on the buy button and the familiar  

trade ticket will appear with the fixed income  information already filled in. On this page you  

will see the total cost of the bond purchase which  includes the accrued interest as well, note that  

it is now possible to enter an amount and nominal  value instead of the dollar amount simply by  

clicking on amount to invest. The total cost will  be adjusted according to this choice, you then  

need to choose the correct account that you want  to purchase the bond in and then click on submit.

We are now on the order summary page  which allows you to review the transaction  

one last time before confirming and sending the  order. The information provided on this summary  

will be the same as on the previous page except  that you have a breakdown of the total cost  

indicating the commission on the purchase.  Below this section any important messages will  

be shown here in our case being a test account  we don't have sufficient buying power to proceed  

but if we did we simply click on confirm and  send order and the transaction will be processed.  

Just like a stock purchase you can always click  on the cancel or modify button to make changes.

Once your trade has been submitted it will appear  in the current order section and once filled the  

bond will be added to your current holdings in  the brokerage account indicated in the trade.  

This concludes our video on how to  buy a fixed income security with  

National Bank Direct Brokerage and for  any additional information or assistance  

please contact a representative from  our call center thank you for viewing.