Which phrase best completes the statement about the secondary debt market?

In the context of the secondary debt market, the statement is best completed by emphasizing the role of dealers in facilitating transactions. Dealers act as intermediaries who connect buyers and sellers of existing securities, allowing for the trading of debt instruments such as bonds after their initial issuance. This function is crucial since it contributes to the liquidity of financial markets, enabling investors to buy and sell securities easily.

When securities are traded on the secondary market, the original issuer is not involved in the transaction, and no new funds are raised. Instead, the focus is on the transfer of ownership from one investor to another, which is a fundamental characteristic of secondary markets. The presence of dealers helps to ensure that there is a market for these securities by providing price quotes and executing trades, making them integral to the functioning of the secondary debt market.

Other options, while relevant to broader financial concepts, do not accurately represent the specific role or function of the secondary debt market. For example, securing loans directly refers to primary borrowing activities rather than trading in an established market. Similarly, creating new securities pertains more to the primary market, where new debt instruments are issued, while regulatory monitoring affects the financial industry as a whole but does not specifically identify the mechanics of secondary debt trading.