Thread

Venice’s failed war against Constantinople led to the first bond market

172 points · 59 comments · RickJWagner

mono442 · 1790969976 · focus · HN ↗
Technically bond markets with fiat currencies are unnecessary but for some reason they still exist.
1. nostrademons · 1790970190 · focus · HN ↗
  Why? The purpose of the bond market isn't to supply the government with currency, but rather to distribute risk and capital payments to those most willing to bear them.
  1. mono442 · 1790974157 · focus · HN ↗
    The main purpose is definitely to supply the government with currency. Many countries put imo unnecessary restrictions on themselves and do not borrow directly from the central bank which would be simpler and cheaper.
    badpun · 1791007874 · focus · HN ↗
    That’s the purpose of the bonds themselves, not bond markets. Government could just as well issue bonds without bond markets existing (so that they cannot be bought or sold).

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