It will also help if you can give examples for each.
With regards to Fixed income securities, whats the difference between Money market & Bond Market?
The main difference between Money Market & Bond Market is, the earlier is used to raise funds for short-term for a day, week, fortnight or max 365 days. Whereas Bond market is used to raise funds for a medium to longer duration i.e 3years,5 years, 10 years or 30 years.
It is a market to issue and trade securities with short term maturity or quasi-money instruments. Instruments like treasury bills, certificates of deposits, commercial papers, bills of exchange etc are traded in the money market. The money market is used by participants as a means for borrowing and lending in the short term, from several days to just under a year. Money market securities consist of negotiable certificates of deposit (CDs), banker’s acceptances, Govt. Treasury bills (91 days, 180 days & 365 days), commercial paper, municipal notes, and repurchase agreements (repos). The money market is typically seen as a safe place to put money due the highly liquid nature of the securities and short maturities, but there are risks in the market that any investor needs to be aware of including the risk of default on securities such as commercial paper.CALL MONEY market is an intergal part of Money Market, Money lent for a day is called "CALL MONEY" if it exceeds a day but less than 15 day's its called " NOTICE MONEY".
Bond Markets is a market to issue and trade securities with medium to long term maturity of securities. The participants are Central & state Governments, Public & Private Companies. Instruments available are :- Zero Coupon Bonds,Coupon Bearing Bonds,Debentures,Floating Rate Bonds. One of the important feature of the bond market is Bonds of higher maturity with 10 years or more will have a call options i.e callable or puttable with a lock in period of 3/5 years.
Bond Market is not so familiar to retail investors is because of lack of transperency in trading, clearing & settlement process.
Thanks Praveen - can you also let me know which of the instruments mentioned are available to trade for retail investors - both on the exchange and off the exchange.
hi, sent you a mail with list of securities you can trade, but its tricky to find the exact match of listed in the sheet & terminal .
what screener platform you use for Fixed income securities? if there is no such platform what data sources are available?
You could try searching for Coporate Bonds/Debuntures on NSDL website or CDSL website (their Advance Search has lot of filtering options). For Government Bonds, RBI website has a list of outstanding G-Secs. Refer to CCIL India website for information about T-Bills and State G-Secs. I had created a more readable list of them (accessible at List of Government of India Securities outstanding as on April 02, 2021* and List Of Treasury Bills Outstanding as on April 08, 2021 and List of State Government Securities outstanding as on March 23, 2021) but those are now out of date.