Credit markets are crucial for businesses for several reasons:
Access to Capital: They provide businesses with the necessary funds to invest in growth opportunities, such as expanding operations or launching new products. Liquidity Management: They help businesses manage liquidity by allowing them to borrow short-term funds to meet operational expenses. Risk Management: They offer tools for managing financial risks through instruments like derivatives. Cost of Financing: They influence the cost of financing, impacting a business's profitability and strategic decisions.