Question

Maximum 250 words

1.Why is debt market important? How is it different to equity market?

2.Overview of what you are seeing in debt markets in Australia and internationally

Answer 1

1.Why is debt market important?

Ans : The debt market permits government to boost cash to finance the event activities of the govt. It plays a crucial role in economical mobilisation and allocation of resources within the economy.
Since the govt securities ar issued to fulfill the short term and future money wants of the govt, they're not only used as instruments for raising debt, however have emerged as key instruments for internal debt management, financial management and short term liquidity management.

The debt market additionally offer larger funding avenues to public-sector and personal sector comes and reduce the pressure on institutional finance. It additionally enhances mobilization of resources by unlocking illiquid retail investments like gold.

--- How is it different to equity market?

Ans :

The terms equity market and exchange ar synonymous . both refer to the purchase and sale of possession shares publicly firms through any of the many stock exchanges and over-the-counter markets within the U.S. and round the world.

A share of stock represents an equity interest in a company. That is, the capitalist is buying an possession stake within the company within the expectation of receiving a share of the profits within the sort of dividends, or making the most of the expansion of its stock worth, or both.
To an organization, commercialism shares may be a thanks to raise money to expand the business. so as to try to to thus, it lists its stock on in the the stock exchanges, like the new york stock exchange, the Nasdaq, or the London stock exchange. the method of listing a new issuing in the U.S. is long and arduous, because it includes detailed monetary filings that meet the rules of the Securities and Exchange Commission.

2.Overview of what you are seeing in debt markets in Australia and internationally

Ans :

Australia has well-developed money markets across major products, as well as cash, debt, equities, exchange and derivatives. These market sectors don't seem to be massive compared to equivalent markets in economies like the united states (US) or Japan. However, commerce activity in several Australian money market sectors is on top of the dimensions of the economy may indicate. as an example, Australia's largest market sector is that the exchange market. The Australian dollar is that the seventh most actively listed currency.
The Australian debt market is comparatively tiny on a global scale.

According to the Bank for International Settlements, the international debt market involves the buying and selling of company and government bonds issued by non-residents of the native debt market. In different words, a global debt market could be a bond market wherever only foreign bonds square measure listed. Economy Watch calculable in 2010 that the international bond market was valued at $47 trillion.