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RAM: Malaysian bond market cools off towards year-end.

Issuance of private debt securities (PDS) continued trending downwards in November, with gross issuance falling 22.5 per cent m-o-m to MYR 4.8 billion - a new record low for 2014. However, the PDS market still exhibits healthy overall growth this year, and is expected to achieve our full-year projection of MYR 85 billion to MYR 90 billion of gross issuance, according to RAM Ratings.

"We expect the positive momentum to carry through to 2015, with MYR 90 billion to MYR 95 billion of gross issuance, underpinned by robust infrastructure spending that will require long-term funding through the bond market. Gross MGS issuance is also expected to show a similar trend next year, reaching MYR 100 billion to MYR 105 billion.

"In October, foreign ownership improved 0.7 per cent m-o-m, bringing the total value of foreign holdings to MYR 251.1 billion. On the other hand, foreign ownership of government securities has been diminishing since August. At the same time, the proportion of foreign holdings to total outstanding securities shrank for all classes, with BNM papers exhibiting the most significant m-o-m decline of 3.6 per cent."

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Publication:CPI Financial
Date:Dec 11, 2014
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