Debt securities are a type of instrument where an issuer, also called as a creditor, provides assets to a borrower with the intention of receiving a repayment of the funds.
Basically, it is a form of contract that represents money owed to another party with a wider perspective.
Debt securities include government bonds, corporate bonds, CDs, municipal bonds, preferred stock, collateralized securities (such as CDOs, CMOs, GNMAs) and zero-coupon securities.
Most debt securities are traded over-the-counter, where most trading now conducted electronically. In daily, total value of debt market trading is much …