Settlement Date
The date when bond ownership transfers and payment is exchanged — typically T+1 or T+2 after trade date.
Settlement date is when the buyer pays cash and receives the bond. In U.S. Treasury markets, settlement is T+1 (one business day after trade). For corporate bonds, it's typically T+2. Settlement date matters for accrued interest: the buyer pays accrued from the last coupon date up to (but not including) settlement. If you buy a bond mid-coupon period, you compensate the seller for interest earned but not yet paid. Think of it as closing day for bonds: the trade date is when you agree to the price, but settlement is when money and securities actually change hands. Delayed settlement allows time for clearance, confirmation, and fund transfers.