Debt market set for a rebound

AFTER a dry spell in 2009, the Malaysian debt capital market is set for a rebound this year. This follows an uptick in bond-market activity since the second half of last year and as the economic recovery gains traction.

The uncertainties weighing down the health of the domestic economy throughout last year had, undoubtedly, influenced overall market sentiment. This had been apparent in the pricing hurdles and investors’ diminished risk appetite; the market only favoured debt papers with at least double-A ratings.