GoKawiil12th-century Venice-Byzantium conflict spurred creation of first bond market
In 1171, Byzantine Emperor Manuel I ordered the mass arrest of Venetians across his empire, jailing more than 20,000 people and seizing their ships and goods, following decades of tension between Constantinople and Venice. Venice, then a thriving trading hub built on colleganza partnership contracts that let ordinary citizens invest in commerce, needed massive funds to respond to the crisis. To raise money quickly, the Venetian government turned to forced loans from its citizens, laying the groundwork for what would become the first government bond market.