Buying & selling bonds with UK Bond Network

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Like everything else for UK Bond Network investors, you can buy bonds from other members that are already in issue or list your holdings for sale, all without paying any fees.

Buying bonds from other investors

As well as investing in new bond issues, you can purchase bonds from other UK Bond Network investors, helping you to reinvest cash flows and reduce cash drag between new investment opportunities.

  • Log into your account and navigate to the INVEST tab. In the Bonds table, you will find all of the bonds available to purchase from other investors, with the amount available, the offer price and the yield to maturity.

  • Once you have found an offer that you would like to purchase and fully assessed the opportunity, from the bond overview page, select the 'Buy Bonds' button next to your chosen offer. Enter the number of bonds that you would like to buy and submit your purchase.

  • Once your Offer to Buy has been received, we will inform the seller and a settlement date will be created for the transfer of the bonds. Before this date, you will need to have deposited the requisite funds into your UK Bond Network investor account for the transaction to go ahead.

How selling works

Selling your holdings is a 3-step process. Please note that when listing bonds for sale, there are no guarantees that you will find a buyer and so you should be prepared to invest for the whole term of the bond.

  • Log into your account and visit the DASHBOARD tab. Find the bonds you wish to sell in the Current Holdings table and click the 'Go to Bond' button.

  • Select 'Place new Offer to Sell' and specify the terms of your Offer, including the number of bonds for sale, the price and whether or not you would accept a partial purchase.

  • Once we have approved your Offer, it will be listed on the platform for potential buyers to view. Your Offer will remain listed until either it is purchased or you cancel it from your Dashboard.

Pricing your bonds for sale

When selling bonds, you have the ability to specify the price that you would like to sell them at. Our pricing structure enables buyers to compare offers across different Bonds, regardless of how much principal has been repaid by each Issuer. You'll also be compensated for any accrued interest by the buyer when your sale settles. Here's how it works:

  • A pool of investors lends £1,000,000 to a Company. 1,000,000 bonds are issued by the Company to the investors, each valued at £1.

  • An individual investor holds 10,000 of these bonds and decides that he wants to sell them. At the point of the creation of his offer to sell, the Issuer has already repaid £0.28 of the principal of each of the bonds, leaving £0.72 of principal outstanding per bond. The investor’s 10,000 bonds now have a par value of £7,200.

  • The investor wishes to make a gain on their sale and as such, offers to sell their bonds at a premium, choosing a price of 102 (102% of par value). This means the investor is willing to sell £7,200 of bonds for £7,344.

  • If the investor has a more immediate need for capital and is seeking to attract buyers more quickly, they may offer to sell their bonds at a discount, choosing a price of 98 (98% of par value). This means the investor is willing to sell £7,200 of bonds for £7,056.

Buying and selling bonds which are in issue carries risks. Please read our Risk Warnings.

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