QUICK DEFINITION
Secondary Market is the market in which existing securities trade between investors after their original issuance.
WHY IT MATTERS
Why Secondary Market matters in bond markets
Secondary-market liquidity and pricing determine how efficiently investors can adjust risk after bonds have been issued.
MARKET CONTEXT
How to think about it
Bond investors use secondary market 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 Secondary Market important for fixed-income investors?
← Back to the Bond Market Glossary Yes. Secondary-market liquidity and pricing determine how efficiently investors can adjust risk after bonds have been issued.