ICMA paper outlines reasons why corporate bond markets important
The International Capital Market Association, ICMA, has published a White Paper for policy makers, highlighting the important role that corporate bond markets play in the real economy.
The paper notes that the asset has long played a role in providing stable long-term financing in the financial services sector, that they have enabled companies to access funding at a time when banks are restricting lending, and that they provide efficient returns to investors in both the primary and secondary markets.
Corporate bond markets are also important to governments to help meet the urgent global public policy challenges presented by ageing populations, and the need to maintain growth whilst remedying the imbalances that led to the 2008 market turmoil. They help limit government indebtedness, whilst offering investors an alternative to government bonds.
To read the full paper click here: [asset_library_tag 6537,Economic importance of the corporate bond markets]