Introduction of Malaysia Bond Market

Bonds are a debt investment, meaning the purchaser of the bond is loaning money to the company or government for a set period. They have a fixed interest rate, meaning the investor knows how much interest will be earned on the loan since the rate will not change.

* Bond - A type of debt or a long-term promissory note, issued by the borrower, promising to pay its holder a predetermined and fixed amount of interest each year. Bonds provide the borrower with external funds to finance long-term investments

| |A bond debenture is a legal document that details all of the conditions relating to a bond issue. |

Typically these types of bonds are voted for (approved) and paid back by the local community (known as voted indebtedness); payments are collected with

A bond is a "security" which gives the holder a financial claim on the issuer. This claim protects the holder in circumstances in which the issuer is unable to pay the amount due. It is made formal by the "trust indenture", a legal document, which specifies all of the bond's features and the legal rights and obligations of all the parties to the agreement (http://www.finpipe.com/bndchar.htm).

required returns. Features of the major types of bond issues are presented along with their legal issues, risk

Bond – a debt investment in which an investor loans money to a corporate or government entity that borrows money for specified period of time at a fixed interest rate. Bonds are used by companies, municipalities, states, and the U. S. government to finance a variety of projects.

Therefore, a bonds is a form of loan or IOU (I Owe You). The lender (creditor) is the holder of bonds, the borrower is the issuer of the bond and interest is the coupon. The borrower with external funds supply bonds for long-term

The entity that issues the bond is known as the Issuer and when you purchase one,

Along with the many different characteristics of bonds such as, the way the pay their interest, the market they are issued in, the currency they are payable in, protective features and their legal status. Bond issuers may be governments, corporations, special purpose trusts or even non-profit organizations. Usually it is the type of issuer or the particular nature of a bond that sets it apart in its own category.

A covered bond is defined as ‘bonds secured by a pool of high quality assets on the issuing financial

The late half of 1997 and the early parts of 1998 presented the world with one of the world’s most famous financial crises. This financial crisis proved to be detrimental mainly to the south-eastern Asian area, including South Korea, Thailand, Malaysia, Singapore, Hong Kong and Indonesia. The aforementioned south-eastern states recorded astounding economic growth in the preceding decade. The downfall of the economy caused a domino effect in the local markets and currency markets of each country. The nations’ leaders, as a result, had to request assistance from the IMF. Politics were important in creating the financial boom, but they were also guilty of the subsequent consequences.

Foreign bonds are bonds sold by a foreign borrower but denominated in the currency of the country in which the issue is sold.

First some history, bearer bonds were used for post Civil War reconstruction (1865-1885). This bond was a negotiable instrument (like a check). Unlike modern bonds that are registered with the holder’s name and address recorded on the bonds, these bonds did not have the name of the owner

Bonds are instrument of indebtedness of the bond issuer to the holder. A bond is can also be defined as a debt security under which conditions the issuer owes the holder debt which comes with conditions and there is an obligation to pay interest and repay the principal at a later date when the bond matures. Sometimes interest, maybe payable at fixed intervals, for example semiannual, monthly, annually. Bonds usually are negotiable and this simply means that ownership of the instrument can be transferred in the secondary market.