Fundamentals of the Bond Market

The debt market, made up of the money market and the bond market, is an important element of the financial system. The bond market, on which this course will focus, is usually seen as the market for long-term marketable debt instruments (i.e. bonds) and the money market as the market for short-term marketable debt instruments, such as commercial paper (CP) and treasury bills (TBs). The bond market can be described as the mechanism and/or conventions that exist for the issue of, investing in, and the trading of marketable instruments that represent the long-term undertakings (usually of a fixed capital nature) of the issuers. This course will expose participants to the broad financial system in the context of the bond market and discuss the specific structure, instruments, mathematics and other tools of the bond market in greater detail.