Question

Why are investors attracted to the bond market?

Answer 1

In the bond market, the relationship is the opposite. The federal government ... to meet its financial commitments. As such, junk bond issuers must pay a higher interest rate to attract investors

Answer 2

They want the stability and safety of a fixed income stream. The bond market is bigger than the stock market and allows for investors to diversify their holdings/investments. The bond market is an exchange where buyers and sellers bid on bonds on a daily basis.