Significance of the Debt Market

The debt market is significant both for the issuers and investors. Here's why.
1. For Issuers (Borrowers): Corporations and governments often have huge requirements needed for projects or implementation of operations. The debt market offers a cheaper source of funding without giving up control and ownership as when one issues shares.For Investors (Lenders): The debt instruments present a stable and less risky investment. Because the stock prices might shift, the debt market is not that volatile in comparison, which appeals to those investors seeking predictable income.

3. For the Economy: The debt markets are crucial for stability and economic growth. It provides governments with a source of generating funds for public projects, infrastructural developments, and other requirements necessary to maintain the economy alive.