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How does the secondary market for bonds work?

FundingPartner Securities offers a digital brokerage service for the purchase and sale of bond loans. We enable investors to register their interest to buy or sell, after which our brokerage desk manually connects the parties and executes the transaction.

NB! FundingPartner has two different secondary markets.
Click here to read about how the secondary market for loans works ->

Here is the most important information you need to know about how the secondary market operates:

1. What can be traded? It is possible to sell bonds arranged through FundingPartner Securities as well as listed bond loans purchased via the FundingPartner Securities platform.

Note: It is not possible to buy or sell bonds that are in payment default or have delayed payments. If this occurs while a bond is listed for sale, the sell order will automatically be cancelled.

2. How do I sell a bond? You can list a bond for sale through My Overview > Portfolio or directly from the loan page for the bond.

  • Price: You specify which bond you wish to sell and your desired selling price. You can only sell entire investments in a bond; they cannot be split up.
  • Cost: A fee of 0.8% of the sale amount is deducted upon sale (minimum 250 NOK).

Once a selling interest for a bond has been registered, an instruction is sent to the broker to find a buyer on your behalf. Your selling interest becomes visible to other investors as part of the total volume available on the market, but you remain anonymous.

3. Market Overview On the secondary market page for bonds, investors will find an aggregated overview of the market:

  • Total volume available for sale in the current loan.
  • Minimum and maximum indicated selling price.

4. For those interested in purchasing: Indicate interest in buying

  • You submit a buy order to the broker's desk with the desired volume and upper price limit by clicking on "Express interest in buying" on the bond you want to purchase.
  • The order is binding until it is deleted. The purchase interest will initially be valid for 30 days, but you can remove it earlier.

5. Matching and Execution (Through a Broker) When FundingPartner Securities identifies that a buy order and a sell order are compatible (matching in price and volume), we initiate the trade:

  1. Matching principle: Matching at the lowest possible price occurs first, until the buyer's desired volume is met, or until there are no more sellers with a price and volume that match the buyer's interest.
  2. Payment instruction: Once the match has been confirmed by the broker, the buyer will receive a payment instruction with a 1-day payment deadline. If the payment is not made within the deadline, the purchase area will be deleted.
  3. Settlement: When the buyer pays the amount, the settlement is carried out. FundingPartner Securities manages the financial settlement and the transfer of ownership is immediately carried out internally in our systems.
  4. Settlement note: Both the buyer and seller receive confirmation that the trade has been completed.

Important information about the service

  • No guarantee: This is not an exchange with automatic execution. Even if you place an order that matches a market indication, the trade must be processed and approved by a broker before it is final.
  • Liquidity: The trade is dependent on there being a counterparty. During periods of low liquidity, it may take time to execute an order.
  • Pricing: The prices displayed are indicative based on market interest. The final rate is determined when there is a match between buyer and seller.