International Bond Market


International Bond Market is very big and has an estimated size of nearly $47 trillion. The size of the US bond market is the largest in the world. The US bond market's outstanding debt is more than $25 trillion.

The International Bond Market has grown double in size since the year 2000. By the end of the year 2006 it has been recorded that nearly $10 trillion of the bonds were outstanding as far as International Capital Market Association data are concerned. This rapid growth of the International Bond Market is due to the bonds that are issued by the various multi national companies.

In International Bond Market, markets which are looked after by the government of a particular country are actually taken into account. These markets are big in size,there is liquidity in the market. These markets lack credit risk which make them sensitive to the interest rates.


In writing about International Bond Market, the Bond Market Association deserves special mention.

Bond Market Association

The Bond Market Association was considered as the association for international trade and bond market industry. Its headquarters were situated in London, New York and in Washington D.C. Nearly Twenty per cent of of the total percentage of membership were placed outside America. while more than 70 per cent were situated outside The City of New York. The Bond Market Association had worked like the global representative for those who issue bonds and trade with them and played a big role in co-ordinating with the government,corporations and with the investors as well. Bond Market association in the International Bond Market also had a code of conduct which the market participants had to follow very strictly.

In the year 2006, the Bond Market Association was merged with Securities Industry Association which formed a new institution called the Securities Industry and Financial Markets Association.