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Debt is bought and sold primarily through financial markets, where investors can purchase debt instruments like bonds, loans, or promissory notes. When debt is sold, the original lender transfers the obligation to receive payments to another party, often at a discount or premium based on the debt's perceived risk and time to maturity. Additionally, secondary markets allow investors to trade existing debt securities, enabling them to adjust their portfolios based on interest rates and market conditions. This dynamic facilitates liquidity and price discovery in the debt market.

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1mo ago

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Related Questions

What is the difference between stock market and bond market?

Equity is bought and sold in the stock marketwhile debt is bought and sold in the bond market.


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Hello, The debt is sold further to another company at even lesser value.


Accurately explains the difference between the stock market and the bond market?

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If your bank charged off your bank account and was bought out by another company do you still have to pay?

yes the debt does not go away, the bank simply sold the debt to an outside collection agency.


What happens if your lender is bought by another company?

You have to pay the new company. It's still a debt and as such the debt was sold as an asset of the old company. It would be NICE if you didn't have to pay it, but you do. Yea, wouldn't it be nice if we didn't have to pay after the local finance company sold my note to GMAC?


Can you pay your debt to the original company if the debt has been passed to a credit company?

No because the original company has 'sold' the debt to the credit company or in other words the credit company has bought the debt account from the original company for less than what you owe. That is why credit companies keep chasing you to pay them.


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