Problems with the US Bond Market

Central Banking policy has had an extraordinary impact on the US corporate bond market. The current corporate debt in the US stands at a staggering $8.5 trillion; almost double of the amount 10 years ago. As US corporations continue to make use of large amounts of debt to finance themselves, the US corporate bond market slowly assumes the position of being the most systematically important market in the US financial system.

Trading activity in the secondary bond market is stagnating in the face of continuing growth, and this is heightening concerns of market liquidity.

In short, the US corporate bond market has not evolved to keep up with the times and an analysis done showed that it is 40 years behind the times.

 

 

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