The process of developing the retail and mid-segment investor base will be continued. Interest rate risk 18. DMS involves issuance of variety of instruments of varying maturities to cater to the preferences of different investors. For example, some investors (banks and financial institutions) like to invest in floating rate bonds (FRBs) for their duration management.
The argument back in the 1950s, as I remember it, was that market uncertainty created significant differences of opinion in the direction of the prices of short-term debt instruments. The result was a "thick market" of bids and asks that increased the degree of liquidity.