Yellow Sheets 2025: Essential Guide & Pricing Insights for Bond Traders

What Are Yellow Sheets?

Yellow Sheets are specialized bulletins designed for bond traders, offering comprehensive data on corporate bonds traded over-the-counter (OTC). These sheets include critical details such as yield, trading volume, daily highs and lows, closing prices, and bid-ask spreads, helping investors make informed decisions.

Published by the OTC Markets Group—formerly known as the National Quotation Bureau (NQB)—Yellow Sheets have evolved into an electronic platform since 1999, delivering real-time updates directly to subscribers. This service complements the Pink Sheets, which provide similar information for OTC stocks.

• Yellow Sheets focus on corporate bonds available through OTC brokerages.
• Pink Sheets serve as the counterpart for OTC stock trading data.
• Both are now digital services maintained by OTC Markets Group.
• They cover securities from companies not listed on major public exchanges.

How Yellow Sheets Work

Yellow Sheets track bonds issued by companies outside national stock exchanges, often smaller or emerging businesses that do not meet listing criteria. The OTC market operates as a decentralized network where dealers trade securities without a centralized physical location.

These sheets provide direct contact information for market makers and brokerages handling these bonds. Subscribers can connect with brokers to negotiate purchases or sales through this closed network, accessible online or via subscription-based hard copies.

Risks and Characteristics of Yellow Sheet Bonds

Bonds featured in Yellow Sheets typically carry higher risk compared to traditional fixed-income securities. Issuers are not subject to the rigorous regulations and disclosure requirements imposed on publicly listed companies, increasing default and liquidity risks.

Some foreign firms list U.S. securities as American Depositary Receipts (ADRs) via OTC markets, adding diversity to Yellow Sheet offerings. Due to the elevated risk profile, bid-ask spreads are generally wider to compensate investors.

Investors should be aware of the potential for issuer default and limited market liquidity, which may make selling these bonds challenging.

History and Evolution of Yellow Sheets and OTC Markets Group

Founded in 1913, the National Quotation Bureau (NQB) began providing OTC stock and bond information through color-coded paper bulletins—yellow for bonds and pink for stocks. After being acquired by Commerce Clearing House in 1963, the NQB transitioned to an electronic platform in 1999 and rebranded as OTC Markets Group.

Today, OTC Markets Group continues to offer real-time electronic Yellow and Pink Sheets, supporting transparency and accessibility in OTC trading.

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