The bond market viewed through a magnifying glass

The bond market also known as the debt market, fixed income market or, credit market, is a
complete name given to trades and debt securities.
Governments, issue bonds to advance capitals or to pay down debts or even to fund
infrastructural incomes. The companies are publicly traded, issue bond when they need to
finance a business expansion projects or maintain ongoing operations.

Types of bond markets:

Before analyzing the bond markets, let understand their types of bond markets:
1. Emerging bond markets: issued by governments and companies located in emerging
market economies, these bonds provide much greater growth opportunities, but
also has a lot of risks.
2. Mortgage backed bonds: these bonds consist of many mortgages in real estate
properties, are locked in the pledge of particular collateralized assets.
3. Municipal bonds: these are locally issued, by states and cities and special purpose
districts, public utility districts, school districts, publicly owned airports and seaports
and other government owned entities.
4. Corporate bonds: many companies issue corporate bonds to raise money for
relevant reasons, such as financing current operations, expanding product lines, or
opening new manufacturing facilities. These bonds describe longer term debts, that
provide maturity of a year.
5. Government bonds: national issued government bonds attract payers by paying out
the face value listed on the bond certificate, on the decided maturity dates, also
issuing periodic interest payments as per the dates, along the way.

Factors you should know about bond markets:

Certain corporate bonds, are issued by private and public corporations. These
companies issue corporate bonds to raise money for a variety of purposes, such as
building a new plant, purchasing equipment or growing the business.
When one can buy such a corporate bond, money is lended to the issuer, by the
company that issues the bond.in exchange the company offers high returns, also known
as principle on the issued maturity date.
Certain very important factors that you should know about the bond markets today are
as follows:
1. Don’t try to predict any rates
2. Understand the risk of reaching of yield.
3. Don’t go long on bonds.
4. Stick with the right kind of bonds.
5. Negative bond returns are rare.
6. Bonds should play a critical role within a diversified portfolio.
 7. Don’t get discouraged.

Conclusion:
The bond market broadly describes a place for marketers where investors can buy
security debts, that are brought to the market by either governmental entities or
publicly traded corporations.
Bonds are either issued by the primary market, which rolls out new debts, or on the
secondary market, in which investors can purchase existing debts through known
brokers or any other third parties.