Gross issuance of corporate bonds at RM17.2b
The primary Malaysian corporate bond market remained muted in the third quarter of 2013 with gross issuance in the quarter
declined seven per cent quarter-on-quarter to RM17.2 billion, said RAM Ratings.
RAM Ratings said market sentiments throughout July and August 2013 continued to be affected by fears of a scale-back in the US quantitative easing programme, which has led to a capital flight from most emerging economies, including Malaysia.
Steepening yield curves across the board was seen during the period.
"Consequently, the bond market remained on the sidelines, with market participants adopting a cautious attitude and several potential issuers postponing their issuance plans," said RAM Ratings in a statement.
Year-to-date, the value of gross public debt securities (PDS) issuances reached RM61.7 billion, down 35 per cent from the same period last year.
However, yields started to ease slightly in September when the US' quantitative easing scale-back had not materialised, said RAM Ratings, adding that the bond issuance may pick up in the fourth quarter of his year.
For the third quarter of this year, RAM published ratings for RM27.3 billion of issuances by programme value, bringing the year-to-date value to RM48 billion, marginally below the previous corresponding period.
Issuers from the financial services sector were the most prolific, accounting for nearly 65 per cent of total PDS issued up to end-September 2013.
Notably during the quarter, CIMB Bank Bhd and Public Bank Bhd issued the first tranche of their respective RM10 billion Tier-2 Basel III-compliant subordinated bond programmes.-- Bernama