What is Active Bond?

An active bond is a corporate bond that is traded actively on the New York Stock Exchange (NYSE).

How Does Active Bond Work?

Companies participating on the NYSE often choose to offer their bonds to investors in the same venue. These bonds, which trade at high volumes and with high frequency, are referred to as active bonds.

Why Does Active Bond Matter?

Active bonds are an attractive choice for investors because, as fixed-income securities, their price is largely unaffected by trade volume. In addition, such bonds tend to have higher Moody's and S&P ratings and may be employed as a safe investment or for diversification.

Ask an Expert about Active Bond

All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Active Bond.

Be the first to ask a question

If you have a question about Active Bond, then please ask Paul.

Ask a question
Paul Tracy
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

Verified Content You Can Trust
verified   Certified Expertsverified   5,000+ Research Pagesverified   5+ Million Users