Bond liquidity on Catalyst: spread, order book and partial fills

A listing does not ensure a buyer

Liquidity describes the ability to trade the required quantity within the required time at an acceptable price. A bond can be listed on Catalyst yet have no current buy order. Maturity and the ability to sell before maturity are separate issues.

The last price describes a completed trade, not a price currently available for your quantity. Check its date, bid and ask orders, and quantities at different levels. With infrequent trades, an unchanged last price does not establish low economic volatility.

A spread example

A hypothetical bond has PLN 1,000 face value. The best bid is 99% and the best ask is 101%. The spread is 2 percentage points of face value, or PLN 20 per bond, not 2% of the PLN 1,010 purchase price. Buying at 101% and immediately selling at 99%, if both orders were available, loses PLN 20 on clean price before commission.

This example ignores changes in accrued interest and assumes enough quantity on both sides. Actual orders can change or disappear before execution. A narrow spread for one bond does not establish that a larger trade can execute at the same price.

Order-book quantities and partial execution

Example: an investor wants to sell 20 bonds, but sees only 3 at the best bid. The remainder requires other orders or waiting. The best displayed price therefore does not automatically value the entire holding. This illustrates a mechanism, not any series’ current order book.

A sell limit specifies a minimum execution price under market rules, but may leave the order unfilled. Partial trades and minimum commissions can affect exit costs. Confirm supported order conditions and fee calculations with the broker.

Organizing a liquidity check

Record data source and time, last-trade date, spread, available quantities and turnover over comparable periods. Analyze the series, not just the issuer: different series from one company can trade differently. Historical turnover does not guarantee a future exit.

The current obligacje.io catalog provides no order book, price history or current liquidity data. Check these with the broker or an authorized quotation source. Our parameters and documents support research on instrument terms. This material is not investment advice.