It is the place where fixed income securities, like sovereign and corporate bonds are traded. Fixed income assets are issued in a primary market and then exchanged in a secondary market. As for the stock market, fixed income assets are traded according to their maturity and risk. These two variables generate what is known as term structure (the yield curve is the graphic representation of the term structure). In Italy, the trading of fixed income assets, company bonds and treasury bonds/bills takes place on the MOT (the telematic market for fixed income assets) and the EuroMOT (telematic market for Euro-fixed income assets issued by international issuers and Asset Backed Securities). These two markets are managed by Borsa Italiana S.p.A. (see Official Exchange trading).
The MOT has traded treasury bonds/bills and private bonds since 1994. The Euro-MOT was created because of the financial innovation generated by new instruments. This innovation has led to the definition of new trading rules (see International Financial market). One of the most important electronic floors for the trading of these assets is the MTS Group. This company belongs to the Borsa Italiana S.p.A., and it is the only European market for fixed income in the eurozone.
Fabozzi, F. J., 2006, Bond Markets, Analysis, and Strategies, Pearson Prentice Hall, Sixth Edition.
Editor: Rocco CICIRETTI
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