• The bond market broadly describes the market in which investors buy debt securities that are marketed either by governments or corporations.
  • National governments typically use bond proceeds to finance infrastructure upgrades and debt repayments.
  • Companies issue bonds to raise capital needed to maintain operations, expand product lines or open new offices.
  • Bonds are issued either in the primary market, where new debt is placed, or in the secondary market, where investors can purchase existing debt through brokers or other third parties.
  • Bonds tend to be less volatile and more conservative than stock investments, but also have lower expected returns.