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Exactly how much larger is the bond market then the stock market?

  • currently, how much larger is the bond market then the stock market?

  • Answer:

    Globally, the bond market is about twice as big as the stock market. The total value of all the bonds outstanding is about $80T and the total market capitalization of all the stocks is $40T. However, there are also tons of derivatives out there that mimic bonds, so total exposure to the bond market is much higher. For example, there are boatloads of interest rate swaps out there and the receive fixed leg experiences about the same kind of pain from interest rate moves as bond holders do. Similarly there are tons of credit default swaps out there and sellers of credit default swaps feel default pain just like bond holders do. Being short a CDS and receiving fixed on an interest rate swap is pretty much a bond...

gregamar... at Yahoo! Answers Visit the source

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What gives you the idea the bond market is bigger than the stock market? Much money has fled from the bond market because of the low dividend rates.

Jim Z

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