Companies can raise funding, for instance through the markets by issuing equity (shares) or debt (bonds) in the market.
Debt markets are securities exchanges on which a company raises cash to finance short-term needs or long-term projects.
An investment bank typically assists a firm in selling debt products, such as bonds and convertible bonds, on domestic and international securities exchanges. A buyer of debt securities, or a bondholder, receives periodic interest payments and, either in tranches or in ‘bullet’ (i.e. the total amount in one go) at maturity, the principal amount loaned.