Definition of «bond market»

The bond market refers to a financial market where investors can buy and sell debt securities, commonly known as bonds. These are fixed-income instruments issued by governments, corporations or other entities to raise capital for various purposes such as building infrastructure, financing projects or funding operations. Investors purchase these bonds with the expectation of receiving regular interest payments and eventually being repaid the principal amount when the bond matures. The price of a bond moves inversely to its yield, meaning that if interest rates rise, bond prices fall, and vice versa. Overall, the bond market is an important component of financial markets as it provides access to capital for borrowers while offering investors fixed-income assets with varying levels of risk and return.

Sentences with «bond market»

  • Nonetheless, dealers will remain the key liquidity providers in bond markets for the foreseeable future. (bis.org)
  • If you hold bonds in a taxable account, consider the tax - exempt funds instead of the total bond market index funds. (noroboinvestor.com)
  • Additionally, you might choose an array of bond market indexes, commodity indexes, and indexes that focus on international securities, which all have different risk profiles. (capitaloneinvesting.com)
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