QUICK DEFINITION
Bond is a debt instrument in which an issuer borrows money from investors and promises specified interest and principal payments.
WHY IT MATTERS
Why Bond matters in bond markets
Bonds are the core instruments through which governments and companies fund themselves in capital markets.
MARKET CONTEXT
How to think about it
Bond investors use bond as part of a wider framework that links prices, yields, cash flows, liquidity and risk. The concept should therefore be read together with its related terms rather than as an isolated definition.
Is Bond important for fixed-income investors?
← Back to the Bond Market Glossary Yes. Bonds are the core instruments through which governments and companies fund themselves in capital markets.