Fixed Income Market
What is Fixed Income Market?
The Fixed Income Market is part of the securities market where fixed income securities, also known as ‘debt securities’, of various types and features are issued and traded. Issuers in this market include Central and State Governments, Municipal Corporations, Financial Institutions, Banks, Public Sector units, public limited companies, private companies, Real Estate Investment Trusts, Infrastructure Investment Trusts etc.
What is the importance of the Fixed Income Market in India?
The key role of the Fixed Income Markets in an economy stems from the following reasons:
- Efficient mobilization and allocation of resources in the economy;
- Financing the development activities of the Government;
- Transmitting signals for implementation of the monetary policy;
- Facilitating liquidity management in tune with overall short term and long term objectives;
- Providing a credible alternative to banks as sources of funding.
Since Government securities (G-Secs) are issued to meet the short term and long-term financial needs of the Government, they are not only used as instruments for raising debt, but have emerged as key instruments for internal debt management, monetary management and short-term liquidity management. The returns earned on the government securities are normally taken as the benchmark rates of returns. The risk-free rate obtained from the G-sec rates is used as benchmark to price securities issued in the corporate bond market.
What are the commonly traded instruments in the Fixed Income Market?
Contact Us:
STCI PD has been one of the most active players in the Fixed Income Market. Apart from participating in government securities auctions on proprietary basis, we also accept Competitive and Non-Competitive bids from clients, thereby benefitting them with wider access to Fixed Income Market. We also, consistently provide two-way quotes in all fixed income securities.