Tuesday, March 12, 2013

Bonding with Bonds Peaks

World Bond Markets have been a Major Source of Capital for the Governments and Corporate Entities in the Developed World for over 5 decades now. But, Global Recession spurred Government Bond Issuance and hence Developed World Economy moved towards Borrowing through Bonds while banks continue to Struggle

Bonds take over banks


The importance of bond markets as a source of finance increased with greater significance during the recent economic downturn as companies diversified away from relying on banks for funding and many governments increased borrowing to fund their increased spending obligations for the massive economic stimulus to their economies. Amounts outstanding on the global bond market increased 10% in 2009 to a record $91 trillion (see figure). Domestic bonds accounted for 70% of the total and international bonds for the remainder while the same remained at 87% domestic and remainder international in the year 1999. US remains the largest bond market with 22% of the total global bond market and 39% of the total domestic bond market in the world followed by Japan with 18% of global domestic bond market.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

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