The international debt securities market

Abstract

Background. The debt securities market is one of the key pillars without exaggeration, on which the modern financial architecture of the world rests. As at the end of the first half of 2015 the volume of the debt instruments in circulation at the largest segments of the global market, issued by sovereign borrowers, corporations in various sectors of the economy and the international financial organizations made up 83,983 trillion $ USA. The scale, heterogeneous nature of participants, as well as the variety of instruments, traded on it, make the market of debt securities as the complex multi-level system. The efficiency of the entire global financial space depends on how much smoothly and trouble-free the communications work within the framework of this system.
The aim of the article is to study the structural changes and development trends of the world market of debt securities that has occurred over the last decade. To achieve the goal of the article it was stated the following objectives: to analyze the structure of the world market debt securities; to define the modern tendencies of its development; to characterize the changes and to evaluate them.
Materials and methods. The research applied the statistical materials of the Bank for International Settlements, World Federation of exchanges, various international financial organizations. We used methods of system analysis of economic phenomena, historical, logical, method of comparison and building of analytical tables.
Results. It has been estimated the parameters of the debt segment of the world stock market. It has been investigated the status and trends in the leading financial markets of debt securities. It has been disclosed the modern structure of world market of debt securities and singled out the factors that determine the current state of its conjuncture. It has been defined the place of different groups of participants in the global bond market and revealed their role in the effective functioning of the debt segment of the world stock market. It has been assessed the activities of international financial institutions because of their increasing influence on the global debt securities market. It has been revealed the functions of leading stock exchanges in the financial instruments trading with fixed income. It has been systemized benefits for listing issuers on the offshore financial markets. It has been highlighted new factors of institutional risks that affect the conditions of functioning of secondary corporate bond markets.
Conclusions. The global market of fixed income instruments is one of the most conservative segments of the global financial market, but is under radical transformation. In developed countries the post-crisis regulatory government initiatives and technological innovations that have already radically transformed the equity markets and have put the task of finding the new optimal market microstructure before the participants of the bond market, the structure, which can provide an adequate level of liquidity and minimize the risks of contract execution for investors. Many bond markets, which are forming, have also undergone qualitative and quantitative changes, increasing its value to national economies. In recent years the overall volumes and number of international bond issues as of sovereign borrowers so of companies from countries, that are developing, significantly increased. Last but not least it became possible thanks to the emission activity of the international financial institutions in these markets. If the segment of public debt instruments is characterized by a satisfactory level, the bond market of enterprises is unavailable or exists in its infancy in the limit stock markets.