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What is the importance of the debt market to the economy?

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Stock Market Trader & Trainer with 11+ Years Experience

Efficient mobilisation and allocation of resources in the economy Financing the development activities of the Government Transmitting signals for implementation of the monetary policy Facilitating liquidity management in tune with overall short term and long term objectives.
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The key role of the debt markets in the Indian economy stems from the following reasons: Efficient mobilisation and allocation of resources in the economy Financing the development activities of the Government Transmitting signals for implementation of the monetary policy Facilitating liquidity...
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The key role of the debt markets in the Indian economy stems from the following reasons: Efficient mobilisation and allocation of resources in the economy Financing the development activities of the Government Transmitting signals for implementation of the monetary policy Facilitating liquidity management in tune with overall short term and long term objectives. Since the Government securities are issued to meet the short term and long term financial needs of the government, they are not only used as instruments for raising debt, but have emerged as key instruments for internal debt management, monetary management and short term liquidity management. The returns earned on the government securities are normally taken as the benchmark rates of returns and are referred to as the risk free return in financial theory. The Risk Free rate obtained from the G-sec rates are often used to price the other non-govt. securities in the financial markets. read less
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Major player in the economy is the government. they need resources for development which needs to be financed. Both long term and short term needs/objectives. In India it is known as Government Securities or G-Sec. They are not only used as instruments for raising debt, but also as key instruments for...
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Major player in the economy is the government. they need resources for development which needs to be financed. Both long term and short term needs/objectives. In India it is known as Government Securities or G-Sec. They are not only used as instruments for raising debt, but also as key instruments for internal debt management, monetary management and short term liquidity management. read less
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Capital Markets Professional(Research Analyst)

Debt markets help the governments to fulfill the long and short term needs and also development activities.Further,it leads to inflow of funds into the economy. It does encourage a lot of low risk investments and also less risky than equity markets
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The debt market, that too an efficient one, is crucial to any economy world over. This segment covers a lot bigger portion of domestic as well as offshore fund flows than the equity securities segment. As the government and corporations, alike, need funds for meeting outstanding obligations and capital...
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The debt market, that too an efficient one, is crucial to any economy world over. This segment covers a lot bigger portion of domestic as well as offshore fund flows than the equity securities segment. As the government and corporations, alike, need funds for meeting outstanding obligations and capital expenditure, the only efficient way to raise funds is via debt market. The debt market creates more transparency, liquidity and market participation than other means. Can you imagine if there was no debt market how would any government - be it India or even the USA - raise funds and meet its short term and long term obligations. The debt market also helps investors find avenue to park their liquidity to earn appropriate returns with relative safety than just putting it in the bank. read less
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There are some websites which will give you all such information about Stock Market such websites are: investing.com moneycontrol.com bloomberg google finance. If still you are not able to find drop me a message I will try to get you that.

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