Bond acquisition occurs on both primary and secondary markets. In the primary market, newly issued bonds are offered for purchase to their first owners. Bonds in initial placement can be acquired through auctions, such as those held on the Moscow Exchange (MMVB).
The auction process is as follows: A dealer bank collects bids for the purchase of bonds, specifying the price and quantity desired by the investor. Based on the submitted bids, the total demand is calculated, and if it exceeds the planned volume, bids with the lowest prices are eliminated.
In the case of a limited number of bids or a low proposed purchase price, the issuer may only fulfill part of the requests, selling any remaining bonds on the secondary market or announcing a failed issuance.
On the secondary market, bonds change hands multiple times. The subject of acquisition is the right to claim from the issuer the payment of the bond's value and the associated interest. For individuals to access the market, it is necessary to enter into a contract with a specialized broker.
Bonds may also be acquired through a dealer bank, but this service is primarily intended for VIP clients, under the framework of trust management. To engage with the bank, it is essential to open a bank account and transfer a substantial sum of money to it.
