You might have heard about the term wholesale debt market. This is mostly term as trading platform for widest range of fixed incoming securities, which include Central government securities. On the other hand, this field further includes treasury bills, bonds issued by the PSU or public sector undertakings and even state development loans of SDLs. Furthermore, this sector also comprises of floating rate bonds, zero coupon bonds, commercial papers, index bonds, corporate debentures and certificates of deposits, non SLR and SLR bonds, which are issued by present financial institutions. You might even come across the bonds, as issued by units of MF or mutual funds and even foreign institutions.
Promising Participants in Wholesale Debt
There are some financial institutions and commercial banks, which are considered to be the prominent participants in wholesale debt market. Over the past few years, the current investor base is likely to be widened to include some of the other names. Some of those are investment institutions, co-operative banks, non-banking financial companies, cash rich corporate, mutual funds and even some of the individuals with high net worth. Some of the financial institutions are known for investing 100% of funds in the present debt market, and it is another significant hike from the earlier limit, which was of 30%.
Dealing with the Recent Statistics
In the recent statistics, it has been found out that government allowed the FIIs to invest in the current T bills with view towards broad basing the present investor rank of the same service. These changes are likely to be flexible and not static. Therefore, you need to stay right and comfortable, while dealing with the best commercial sectors of all time. It is time for the experts to learn everything possible about the wholesale debt market and implement the same idea in the same sector.
WDM Trading Service for You
If you go by the wholesale debt market, then the trading system has been divided into two sub-types. One is defined as continuous market, and another one is the negotiated market. If you go by the continuous market, the seller and buyer are not aware of each other and out best sell or buy orders. These are now stored in ordering book with time or price priority. In case, the order matches, the result will turn out to be trade. The current traders in the wholesale debt management are directly settled between participants for taking an exposure to settlement risk, associated with unknown counter party.
Trading Structure of WDM
The debt market is dominated mostly by the government securities, which can account for trading volume, between 50% and 75%, along with market capitalization. For the outstanding value of current issued securities, the governmental securities will range from 70% to 75% and the debt markets trading volume will be within the marginal variation from 90% to 95%. The treasury bills and state government securities will be around 3 to 4% of the current daily trading volumes. The present trading activity will be in the current G section. You can click here to get some important information in this sector.
