1. Call your broker
Call your broker as soon as you see an advertisement, but at the latest during the retail-only order period. If you do not have a broker, to view a list of qualified firms click here.
2. Review the maturity schedule
Together with your broker, review the maturity schedule and coupons of the bonds to be offered and select the bond(s) you wish to purchase.
3. Submit Your Order
Your broker will submit your order on an electronic ordering platform.
Payment for the bonds you ordered is due to your broker generally two weeks after the order period.
Retail-Only Order Period
The Office of the State Treasurer seeks to ensure that retail (i.e. individual) buyers of State of Connecticut bonds can have their orders filled before large institutional buyers. Therefore, our practice is to have a one-day or two-day “retail-only” order period just prior to the actual bond sale. Retail customers who place their order with their brokers during the retail-only order period will receive first priority over institutional investors on bond allotments, subject to availability. Payment is due a few weeks later.
Do you have a brokerage account?
To order a State of Connecticut bond during the retail-only order period, you must have a brokerage account at one of the qualified brokerage firms the State Treasurer uses to sell bonds (see list below).
If you do not have a brokerage account, you will need to establish one. A broker will help determine your level of risk tolerance, your particular suitability to purchase bonds and tax implications, among many other things.
You cannot purchase bonds directly from the Office of the State Treasurer.
The State generally structures its bonds with maturities ranging from one year to 20 years. Therefore, you can select a bond that suits your particular investment timing needs or those of your family.
Primary v. Secondary Market
State of Connecticut bonds offered during a retail-only order period are referred to as the “primary” market. Once the bond sale has ended and the bonds are delivered to the customer, they are free to trade in the “secondary” market (similar to buying a new car versus a used car). The State has no control over bond costs or bond availability in the secondary market.
Payment of Bonds
Bonds are available in denominations of $5,000 and multiples thereof. Depending on your brokerage firm, there may be a minimum purchase amount. You should inquire about this.
The State, instead of the purchaser, pays the sales/broker commission for each primary market offering of a State of Connecticut bond.
Although the State pays the sales/broker commission on primary offerings, there may be a bond “premium” or “discount” associated with the bond you select.