Bond market is expected to remain strong in 2018, amounting up to RM90b – RM100b, says RAM Ratings

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The bond market is expected to remain robust this year, with RM90 billion to RM100 billion of gross corporate bond issuance to take place, said RAM Rating Services Bhd (RAM Ratings) in a report by The Star on Jan 25, 2018.

“The strong corporate bond issuance is driven by a healthy pipeline of issuances from the financial institutions and infrastructure, as well as utility sectors which have traditionally issued the largest share of the market’s corporate bonds,” said RAM Ratings Services Bhd Head of Research Kristina Fong.

The latest RAM’s Bond Market Monthly stated that in 2017, the gross issuance of corporate bonds hit a record high of RM124.9 billion, surpassing its expectation of RM105 billion to RM115 billion.

“The robust issuance in 2017 was supported by both sub-segments of the corporate bond market – quasi-government and private, which posted double-digit year-over-year rates of 46.1 per cent and 45.6 per cent respectively,” it said.

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