3 Answers
A debt market is a market in which the securities of different types of debt are traded.
Instruments used in debt markets include:
- Bonds
- Notes
- Bills
- commercial paper and
- derivatives.
The instruments used in the debt market include bonds, notes, and bills.
Bonds are long-term debt securities issued by corporations or governments.
Notes and bills are short-term debt securities issued by individuals or companies.
Debt instruments are widely used in the market to obtain funds for a variety of purposes. The instruments used in the debt market include bonds, debentures, notes, and bills.
Debt instruments are broadly classified into two categories:
1) Debt securities that are sold to investors by issuing companies (e.g., bonds) and
2) Debt securities that are sold to investors by borrowing companies (e.g., debentures).
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