Meaning of debt

An amount owed to a person or

organization for funds borrowed.

Debt can be represent by a loan
note, bond, mortgage or other form
stating repayments. These different
form all imply intent to pay back on
amount owed by a specific date,
which is set forth in the repayment
terms.

W hat is an internationaldebt m arket ?

According to the bank for international

settlements, the international debt market

involves the buying and selling of corporate
and governments bounds issued by nonresidents of the local debt market. In other
words, an international debt market is a bond
market where only foreign bonds are traded.

D ebt Instrum ents

Types

issuers

instruments

Government
Central government:
bonds, Coupon bearings
Securities
bills, Floating rate bonds.
State government:

Zero coupon
Treasury
Coupon

bearing bond.
Public sector
Bonds
guaranteed

Government agencies,
statutory bodies:
Public sector undertakings:

Private sector
corporates :
Commercial papers,
Bonds
Floating rates, & Zero coupon

Debentures, Government

bonds.
Commercial paper, Debentures.
Debentures,
Fixed,

Features of international debt market

1. Its competitive in nature, as number of
2.
3.
4.
5.

participants is large.
Strong and safe market, as govt. securities
are traded.
Substantially low transaction cost relative to
equity & money market.
Volume of transaction is huge, relative to
equity market.
Heterogeneous in nature, as the result to
different type of participants.

Participants involved in debt market

Prominently Government, primary dealers, mutual fund
firms,
Provident fund house, foreign institutional investors,
commercial
Banks, insurance companies and charitable institutions are
the
Participants of the debt market.

THANK