abhishreshthaa
Abhijeet S
Debt markets are pre-dominantly wholesale markets, with institutional investors being major participants. Banks, financial institutions, mutual funds, provident funds, insurance companies and corporate are the main investors in debt markets. Many of these participants are also issuers of debt instruments.
The small number of large players has resulted in the debt markets being fairly concentrated and evolving into a wholesale negotiated dealings market
. Most debt issues are privately placed or auctioned to the participants. Secondary market dealings are mostly done on telephone, through negotiations. In some segments, such as the government securities market, market makers in the form of primary dealers have emerged, which enable a broader holding of treasury securities.
Debt funds of the mutual fund industry, comprising of liquid funds, bond funds and gilt funds, represent a recent mode of intermediation of retail investments into the debt markets.
The small number of large players has resulted in the debt markets being fairly concentrated and evolving into a wholesale negotiated dealings market
. Most debt issues are privately placed or auctioned to the participants. Secondary market dealings are mostly done on telephone, through negotiations. In some segments, such as the government securities market, market makers in the form of primary dealers have emerged, which enable a broader holding of treasury securities.
Debt funds of the mutual fund industry, comprising of liquid funds, bond funds and gilt funds, represent a recent mode of intermediation of retail investments into the debt markets.