The corporate bond market debt securities are the obligatory corporate bond market issue by large corporations for the capital and operating cash flow expense. The corporate bond market debt is an issue by a wide variety of corporations who are heavily dedicated in the financial markets, the industrial sector, and the service related industries worldwide. There is on average four trillion dollars in corporate bond market debt outstanding currently and the figures are rising and changing daily.
The interest and principal payment outstanding on the swath of assets are passing along through to potential investors, institutions, financiers, who invest in quality rated short-term liquid assets, such as cash. The corporate bond market contains instrument markers throughout the system to aid the banker's acceptance, certificates of deposits and the commercial paper held or in trade. Collectively the corporate bond market, together with these instruments account for the 2.5 trillion dollars in outstanding monies.
The corporate bond market and the national bankers accept these types of corporate bond market trades and use them to finance many international transactions in valuable goods and product services. Large amounts of cash denominations negotiate time deposits by the commercial banks and the thrift institutions, representing an average of 1.2 trillion. The corporate bond market commercial paper is short-term unsecured promissory notes, rather than actual paper currency issued by both the financial institutions and the non-financial corporations. Through the corporate bond market it is currently 1.3 trillion dollars of the entire market. The corporate bond market securities represent an ownership interest in asset loans made by these same financial institutions such as:
- Loans made by the savings and loan industry.
- Loans made by the commercial bank industry.
The corporate bond market serves as the underlying factor paid off by various financiers receiving payments of interest and the principal through the investment into the market. The corporate bond market is debt obligations and the corporate bond market is the exemption of interest through a subsidy provided through permits issued. The implicit subsidy permits the known issuers to compete effectively for capital in the secure bond market.