Debt market refers to that financial marketplace wherein different forms of debt instruments, such as bonds, debentures, and certificates, are bought and sold. This marketplace allows governments, corporates, and other institutions to finance their activities by borrowing from investors, who receive periodic interest payments until the debt is repaid.

A debt instrument is thus fundamentally an issue of debt by an entity that literally borrows from investors and agrees to pay back such borrowings, typically along with interest. Investors find these instruments appealing for these offer steady income and sometimes involve lesser risk compared to stocks. Debt instruments have a due date for repayment of principal which, in turn makes their repayment relatively more certain.