debt market

The debt market is where borrowers—like governments, companies, or individuals—obtain funds by issuing debt instruments such as bonds or loans. Investors, including individuals, banks, or institutions, buy these instruments, effectively lending money in exchange for regular interest payments and the return of principal at maturity. It’s a key part of the financial system that helps fund projects, government operations, and business expansion. The prices of these debt instruments fluctuate based on interest rates, credit risk, and economic conditions, influencing borrowing costs and investment strategies.