Unlike the Stock Market which is an auction-based market where investors can readily see buying and selling prices, bonds are traded over-the-counter (OTC) with different Dealers "marking up" the same bonds by different amounts. An identical bond may be 1-2% more expensive at one Dealer versus another. This makes it difficult for investors to independently verify when and at what price particular bonds have been trading and whether or not they bought at a "fair" price.

The Regulators are obviously aware of this, so the National Association of Securities Dealers (NASD), the Bond Market Association, and the Municipal Securities Rule Making Board (MSRB) have been working on making the system more transparent. The NASD through their Trade Reporting and Compliance Engine (TRACE) and their nasd.com website, and the Bond Market Association through their www.investinginbonds.com website, are now providing real-time, 15 minute delayed prices at which individual bonds have traded.

Fidelity Investments has announced they will be the first major retail brokerage firm to offer this data to their investors. In addition, Fidelity will also provide email alerts that confirm when trades have been executed as well as news releases relevant to the Bond Market. Not to be outdone, Charles Schwab & Company has also announced their intention to provide this data later this year.

To continue to follow top investment headlines from the Associated Press, as well as getting stock and mutual fund daily prices and news releases, charts for your holdings, company conference call links, and even updated personal portfolio holdings, be sure to visit the ManagingMoney.com Investment Center.

Click Here to View the YouTube Video News Release