Key features of debt capital markets

What are the debt capital markets?

If an entity wishes to raise money (ie 'capital'), it usually has three main options available to it. It can:

1. •

   (in the case of a corporate only) issue shares (to raise share capital)—this is usually done through the equity capital markets

2. •

   borrow the money from an institution such as a bank (to raise loan capital)—this is done through the loan markets (see Banking & Finance topic: Types of lending—overview), or

3. •

   issue debt securities

Where an entity raises capital by issuing debt securities, it does so in the debt capital markets.

For more information, see Practice Notes:

1. •

   Introductory guide to the debt capital markets

2. •

   Debt capital markets and debt securities—frequently asked questions

3. •

   Key features of the debt capital markets, and

4. •

   Issuing debt securities—key documentation

Loans versus debt securities

Loans come in a wide variety of forms. A simple and very