Author Topic: Bond market continues to set records  (Read 7286 times)

Offline Ļaughing Ģor

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Bond market continues to set records
« on: October 31, 2012, 02:01:39 AM »
Published: 2012/10/30 Business Times

KUALA LUMPUR: Malaysia's bond market continues to grow at a record pace this year, with issuances hitting RM100 billion as at end-September, surpassing the record RM70 billion set last year, said the Securities Commission (SC).

Its chairman Datuk Ranjit Ajit Singh said the total amount of bonds outstanding stood at close to RM980 billion as at end-September compared with RM841 billion as at the end of last year.

"Malaysia is today the third largest local currency bond market in Asia," he noted in his keynote address at the 17th Malaysian Capital Market Summit here yesterday.

Malaysia also remained at the forefront of the Islamic bond (sukuk) market, accounting for 68.5 per cent of global sukuk outstanding.

Just last month, the SC launched a framework to allow retail investors to participate in the ringgit bond and sukuk market.

Previously, only institutional and other sophisticated investors were allowed to make such investments.

Under the SC's retail bond framework, retail investors will initially be able to invest in bonds and sukuk issued or guaranteed by the Malaysian Government.

"In the next phase, retail investors' access to bonds and sukuk will be expanded to include issuances by public listed companies and banks, for which guidelines and regulations will be announced in the first quarter of 2013," Ranjit said.

He said the phased approach will provide retail investors time to understand and get familiar with investing and trading in bonds and sukuk.

"We recognise that retail bonds will not be part of the investment portfolio of every investor; nor would every issuer find it cost-effective, given their circumstances, to tap the retail segment. However, the point is for all investors and issuers to have a choice because the avenue is available," he remarked.

On another matter, he said the SC will launch its framework for business trusts, first announced under Budget 2013, by the end of the year.
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