Corporate Debt Market

The corporate debt market is where companies raise money by issuing debt securities, such as bonds, to investors. When a company needs funds—perhaps for expansion or operations—it borrows from investors and agrees to pay back the principal amount with interest over time. Investors, in turn, receive regular interest payments and return of their principal at maturity. This market helps companies secure financing outside of banks, offering a way to fund projects while providing investors with opportunities for income. It plays a vital role in the broader financial system by efficiently channeling capital between corporations and investors.