BIX ARTICLE
Malaysia Bond And Sukuk: Quarterly Report 4Q 2018
Mar 05, 2019
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4Q2018 – Gov Bond performance as expected
Malaysia Government Security (MGS) and Government Islamic Instrument (GII) yields for 2018 was disappointing especially for the shorter tenure (3-5 year) as expected from US trade war and increasing Fed Fund Rate.
However, local market shows improvement throughout the year as newly elected government continue to show clearer direction with the release of 11MP mid term review and Budget 2019.
GOVERNMENT BOND AUCTION
Overview
Total Government new and reopening auction issued at RM18.8 billion during the quarter. The take up during the quarter is decent with the average BTC at 2.29x with the highest for 7-year GII 08/25 at 2.81x BTC and lowest demand for 20-year MGS 06/38 at 1.66x BTC. The year 2018 BTC averaging at 2.29x compared to 2.20x in 2017 |
For 1Q2019, there will be 3 MGS maturing for March amounting to of RM7.18 billion. There will be 4 auction of MGS and 5 GII for next quarter. |
CORPORATE BOND & SUKUK
Overview
Malaysia Corporate bond and Sukuk issuance for 4Q18 is higher by 39% at RM29.0 billion compared with 3Q18 issuance at RM20.8 billion and 38% lower compared to 4Q17 issuance at RM40 billion. Higher issuance towards the 4 quarter as the yield stabilize after a volatile middle of the year from the changes in government. |
There are 4 upgraded and 2 downgraded issuer during 4Q 2018.
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Disclaimer
This report has been prepared and issued by Bond and Sukuk Information Platform Sdn Bhd (“the Company”). The information provided in this report is of a general nature and has been prepared for information purposes only. It is not intended to constitute research or as advice for any investor. The information in this report is not and should not be construed or considered as an offer, recommendation or solicitation for investments. Investors are advised to make their own independent evaluation of the information contained in this report, consider their own individual investment objectives, financial situation and particular needs and should seek appropriate personalised financial advice from a qualified professional to suit individual circumstances and risk profile.
The information contained in this report is prepared from data believed to be correct and reliable at the time of issuance of this report. While every effort is made to ensure the information is up-to-date and correct, the Company does not make any guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information contained in this report and accordingly, neither the Company nor any of its affiliates nor its related persons shall not be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof.