Debt Market
A market where a bond or debt is traded. Trading means buying or selling. So in debt market there is a trade of debt. Usually it is divided into two:
- Primary - where a new debt is issued
- Secondary - where the existing debt is being traded.
Debt market is also called as bond market or credit market. The trading includes securities issued by the government, Municipal or Corporation bodies, Private organizations, banks etc. It is targeted in long term funding of the expenditures.
Debt Market in India
The globalization has led to immense growth of financial reforms in India. Thus debt market became one of the leading fund raiser financial tool for the public as well private ventures. By year 2010, the foreign investments in debts market of India was about 30 %. This contributed a stable growth of Indian economy.
Various governmental institutions find their fund by selling the interest generating debt certificates. Not only governmental bodies, but private institutions in India also turned towards debt marketing in the recent decade. But still equity market holds their fame among the business place because of their quicker response to market fluctuations.
Various Debt/Bond Market in India
- Government bond market
- Municipal bond market
- Corporate bond market
- Mortgage bond market
- Funding bond market
