Title: Why Is Bond Market Falling
Headings: Why Is Bond Market Falling
Why Is Bond Market Falling
Content: If you financial advisor is inexperienced, you will become aware of the falling bond market through your statement. You have to remember that when the bond market falls, the first to get affected are utility companies, gas companies and electric companies. When there is rumor of recession or inflation, bond prices always take a dip. Individual bonds are also influenced by credit and interest rate risks. When a bond’s credit rating is lowered, the price of a bond decreases significantly. This is because the risk that the company might default increases. This does not, however, influence the bond market. Although, if the trend is seen in too many companies, too often, there is a general decline in the bond market. Bond markets are decentralized and have no common exchanges. This means that there are no rules which govern the sale and purchase of bonds.