Fixed-income investorsstill in for a bumpy ride

THIS year is likely to be another challenging year for fixed-income investors as the weak market sentiments that persisted in the 2H08 will continue in the current year. In view of slowdown in business activity, there is strong likelihood of significantly lower issuance of corporate debt in contrast to an expansion of government bond issuance.

The prevailing economic uncertainty will continue to assert downward pressure on credit quality and corporate spreads.