Need of the Investors:

It is opined that debt should be managed in such a way that the type and the terms of issues need to be suitable to the investors.  Otherwise it would be difficult to the government to manage its debt. For example, if the government plans converting of the short-term securities into a long term debt, it will have to offer the terms in such a way to attract the bondholders and the investors to see that the general liquidity of the public debt remains more or less the same.  If the debt management does not cater the needs of the investors; it may lead to disturbances in the security market.

At the same time, if the interest of the investors is protected by keeping the rates high, the cost of public debt becomes high.