What is the bond market?
Also known as the debt market, the bond market is a financial market dealing with the trade and issuing of debt securities. It primarily provides funding for things like government projects and business expansions - public and private expenditures that need long-term funding.
Where have you heard about the bond market?
The bond market is a huge part of the credit market along with bank loans . It's particularly well-used in the United States, which accounts for 44% of the market. Projects dealt with over the bond market include pension funds and life insurance.
What you need to know about the bond market.
In the bond market, you can use the primary market to issue new debt, or trade debt securities in the secondary market. Trading is usually in the form of bonds, but it can also include bills and notes. The bond market is used by institutional investors, traders and governments as well as individuals.
There are a three main types of bond markets: corporate, government and agency. Government bonds are the most important of the three - they're used to compare other bonds to measure credit risk.
Find out more about the bond market.
Bond markets deal primarily in the issuing of debt securities. Find out more by reading our definition.