QUICK DEFINITION
Cash Bond is a bond traded as the underlying security itself rather than through a derivative such as a future or swap.
WHY IT MATTERS
Why Cash Bond matters in bond markets
Cash bonds anchor many relative-value and basis trades against derivatives.
MARKET CONTEXT
How to think about it
Bond investors use cash bond as part of a wider framework that links prices, yields, cash flows, liquidity and risk. The concept should therefore be read together with its related terms rather than as an isolated definition.
Is Cash Bond important for fixed-income investors?
← Back to the Bond Market Glossary Yes. Cash bonds anchor many relative-value and basis trades against derivatives.