The evolution of bond markets

The evolution of bond markets
After creation of credit from banks, the birth of the bond market marked the second watershed mark in the ascent of money. Today, bond markets play a central role in managing the economy. It is the bond market that sets long-term interest rates for the economy as a whole. Indeed, most of our savings in the land market in bonds.

It was a war that prompted the growth of bond markets. The Italian city states contributed in a major way of increasing the bond market. The ability to finance the war through the market for government debt is an invention of the Italian Renaissance. But soon turned into action in London. No wonder, since Britain is a superpower those days. By the mid 18th century, London was a thriving bond market in which consoles were the dominant government securities traded.