What is a New Issue?
At launch, bonds are sold to investors via an investment bank or broker. This is
known as the primary market. Gilt issues are also offered directly to the general
After this primary phase, bonds are then free to trade between investors and/or
market counterparties. However, unlike equities that trade through a centralised
stock exchange, bonds generally trade on a peer-to-peer basis from one institution
(such as an investment bank) to another (such as a broker).
Benefits and risks to investors investing in a New Issue
No commission charged on your initial investment