Exercise 6. Learn the Dialogue The Bond Market F : Financialmarkets are generally classified as money or
capital markets and primary or secondary markets. Do you
follow this classification ?
R : Yes, we do. But structurally we divide our financial
market into a hard – currency market, a bank credit market,
debt and equitymarkets and the market of gold and precious
metals.
F : I see. My experience in Russia tells me that your
investos prefer operatations in the hard currency market to
investing in the real sector of youreconomy.
R: Yes, our capital markets are thin, they have a good
potential .
F:It’s a pity, because the debt market, for one, is a
powerful instrument of monetary policy. Many governments
issue bonds to solve their financial problems and to cover
budget deficits.
R :And how is theinternational bond market performing
this year ?
F :Volumes of issuance have been rather high, though
fewer bonds have appeared from emering markets of Eastern
Europe.
R : Investors are still viewing borrowers in emerging
markets too risky, I suppose. Western sovereign borrowers are
the main players in the market, aren’t they ?
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F :Well, yes, but many are trying to slow down their
borrowing and reduce their national debt.
