Why is the Bond Market Useful? Evidence from Risk Management

Abstract

The bond market is crucial for the financial market, because as long as a public company is faced with the birth of the bond market through the decentralization of shares at the same time. And risk management strategies are equally important for a company. A business can be exposed to significant risks causing losses within the business during the course of operations. It is then necessary for the managers of the company to develop risk management strategies to reduce the risk of the company. The topic of this paper is Why is the bond market so useful? What contributions can it make to risk management strategies? Through this analysis, we know that understanding the bond market can help managers to develop risk management strategies. In addition, the significance of this research paper is also shown in theprovide implications for investors.