Meor Amri: Some of the non-rated issuances tend to have equity tie-in structures embedded.
PETALING JAYA: The appetite for non-rated bonds, which was once thought to be “inferior” to their rated counterparts, is fast gaining traction in Malaysia.
The removal of the mandatory bond ratings requirement since 2015, stricter lending conditions imposed by banks, prevailing low interest rate environment and higher returns for such papers are among the catalysts that have spurred the demand and issuance of unrated corporate bonds.
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