INDEED, it is challenging times for the country’s private debt securities (PDS) market which is the largest source of private sector financing. Although during volatile times, bonds offer more stability than equities, they too are vulnerable to significant changes in the general economic environment.
The number of debt papers issued this year is projected to fall in view of the tough climate. Industry observers say that although there remains strong interest from the corporate sector to tap into the bond market for funds, the actual issuance remains low in 2008 in the wake of the global financial crisis.