But international experience largely shows that while all most all developed markets have corporate bond markets, relatively few are regarded as large or active. In India too, inspite of persistent policy focus, this is one area where the outcomes have been less than satisfactory.
The intractable issues pertain to the structural elements relating to the lack of appetite for credit risk among non-bank institutional investors. The issuances have therefore been largely restricted to financial institutions and public sector entities. A case has been sought to be built in favour of allowing banks to guarantee bonds.