- A debt is a loan a firm must repay or a financial promise it must fulfill on time. A debt is otherwise known as a liability.
- The debt market is a securities exchange or financial platform in which lenders and borrowers meet to engage in short-term or long-term transactions.
- There are two types of debt market: physical or electronic. The New York Stock Exchange is an example of a physical debt market, where people can meet face-to-face. An electronic debt market helps investors buy and sell investment assets through computer servers from remote locations.
- Debt products include bonds, convertible bonds and commercial papers. Private loans, overdraft agreements and lines of credits are also debt products.
- Debt market participants vary by size and location. These participants include financial institutions, such as banks and insurance companies, governments and corporations.
- Debt market regulators include the United States Securities and Exchange Commission, the Commodities Futures Trading Commission and the Financial Industry Regulatory Authority.
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