Types of bond market
According to different classification standards, the bond market can be divided into different categories. The most common classifications are as follows.
(1) According to the operation process of bonds and the basic functions of the market, the bond market can be divided into issuance market and circulation market.
The bond issuance market, also known as the primary market, is the market where issuers sell new bonds for the first time. The role of the bond issuance market is to distribute bonds issued by the government, financial institutions and industrial and commercial enterprises to the society and raise funds from investors.
The bond circulation market, also known as the secondary market, refers to the market where issued bonds are sold and transferred. Once a bond is subscribed, the creditor-debtor relationship will be established within a certain period of time, but through the bond circulation market, investors can transfer their creditor's rights. Liquidate bonds.
Bond issuance market and circulation market are complementary and interdependent whole. The issuance market is the source of the whole bond market and the premise and foundation of the bond circulation midfield. Developed circulation market is an important support of circulation market, and its development is a necessary condition for its expansion.
(2) According to the market organization form, the bond circulation market can be further divided into on-site trading market and over-the-counter trading market. Stock exchanges are places where securities are bought and sold, such as China's Shanghai Stock Exchange and Shenzhen Stock Exchange. The market formed by buying and selling bonds in the stock exchange is the floor trading market, which is a relatively standardized bond circulation market form. As the organizer of bond trading, the exchange itself does not participate in bond trading and price determination. Just create conditions and provide services for bond buyers and sellers. And supervise it.
OTC market is an intermediate place for securities trading outside the stock exchange. Counter market is the main body of OTC market. Many securities institutions have special securities counters through which bonds can be bought and sold. In the field of OTC, securities institutions are both organizers and participants. In addition, the OTC market also includes the inter-bank market and the market formed by some institutional investors through telephone, computer and other communication means. At present, China's bond circulation market consists of three parts: Shanghai and Shenzhen Stock Exchanges, the interbank market and the OTC market of securities institutions.
(3) According to the different places where bonds are issued, the bond market can be divided into domestic bond market and international bond markets. The issuer and place of issuance of domestic bond midfield belong to the same country, while the issuer and place of issuance in international bond markets do not belong to the same country.