THE domestic bond mart is likely to maintain its dynamism given the abundant liquidity in the system, steady interest rates and resilient demand.
Furthermore, the ongoing economic recovery should lift corporate earnings, which in turn would raise credit quality, Rating Agency Malaysia (RAM) said in a statement.
The Malaysian bond market charted another record performance in 2003, with an increase of 76% in private debt securities (PDS) issued to RM43.8bil.
The robust pace of PDS issuance was underscored by Bank Negara's continually accommodating monetary policies and the generally unexciting stock market for the most part of last year.
RAM said the infrastructure and utilities sector emerged the leader in terms of PDS issued in 2003, led by Tanjung Bin Power Sdn Bhd with a RM5.57bil Islamic bond issue. This represents the largest debt issue by an independent power producer to date.
The agency achieved a revenue of RM20.45 mil and an aftertax profit of RM5.15mil for the financial year ended Dec 31, 2003. Bernama
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