Definition of Bond market:
Financial market consisting of bond issuers, underwriters, buyers, and brokers/dealers.
The bond market is broadly segmented into two different silos: the primary market and the secondary market. The primary market is frequently referred to as the "new issues" market in which transactions strictly occur directly between the bond issuers and the bond buyers. In essence, the primary market yields the creation of brand new debt securities that have not previously been offered to the public.
The bond market—often called the debt market, fixed-income market, or credit market—is the collective name given to all trades and issues of debt securities. Governments typically issue bonds in order to raise capital to pay down debts or fund infrastructural improvements. Publicly-traded companies issue bonds when they need to finance business expansion projects or maintain ongoing operations.
How to use Bond market in a sentence?
- The bond market broadly describes a marketplace where investors buy debt securities that are brought to the market by either governmental entities or publicly-traded corporations.
- Bonds are either issued on the primary market, which rolls out new debt, or on the secondary market, in which investors may purchase existing debt via brokers or other third parties.
- Companies issue bonds to raise the capital needed to maintain operations, grow their product lines, or open new locations. .
- National governments generally use the proceeds from bonds to finance infrastructural improvements and pay down debts.
Meaning of Bond market & Bond market Definition