Võlakirjabörsid

Võlakirjabörsid, also known as bond exchanges, are marketplaces where bonds are bought and sold. They play a crucial role in the financial system by providing liquidity and price discovery for fixed-income securities. Unlike stock exchanges which are primarily for equities, bond exchanges focus on debt instruments issued by governments, municipalities, and corporations. These exchanges facilitate trading by bringing together buyers and sellers, enabling efficient transactions.

The operation of a võlakirjabörs can vary. Some are organized exchanges with a central trading floor or electronic platform, while others are more decentralized over-the-counter (OTC) markets where trading occurs directly between two parties. The primary function of a bond exchange is to allow investors to trade bonds before their maturity date. This means that if an investor needs to sell a bond they hold, or wants to buy a bond that is already in circulation, the exchange provides a venue to do so.

Prices on bond exchanges are determined by supply and demand, influenced by factors such as interest rate movements, the creditworthiness of the issuer, and economic conditions. The existence of a liquid secondary market through these exchanges is vital for the primary issuance of bonds, as it assures investors that they will be able to sell their bonds if needed. This, in turn, helps issuers secure the funding they require.