THE Malaysian bond market is gradually entering a buoyant cycle and institutional investors should look to the domestic bond market for capital gains opportunities, particularly bonds with credit ratings lower than the AAA issues such as AA or single-A corporate bonds.
According to Aseambankers Malaysia Bhd assistant vice-president and economist, Baljeet Kaur Grewal, the private debt securities (PDS) market had been fairly buoyant in the first quarter of this year, especially in the AAA band, denoting the market preference for higher rated papers, given the defensive stance of most investors.