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What is the Malaysian Bond Market?

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What is Bond? The Malaysia bond market is one of the most developed and dynamic bond market in the region. The bond market are known as credit, debt or fixed income market in a financial market where participants buy debt securities or sell debt securities, usually this is in form of bonds. [1] Debt is an amount of money borrowed by one party from another party with permission under the condition that is to be paid back at a later date, this is in form of interest. Credit is an amount of money by borrower repay back to the lender at some future date, generally charge with interest. [2] Fixed income securities is the buyer of a newly issued coupon bond is lending money to the issuer, who in turn, agrees to pay interest on a fixed schedule loan and repay the principal at a stated maturity date.[3] Futhermore, the bond market also provide another avenue for goverments or corporations to raise capital. Government bond issued are basically “risk free’. Essentially, bonds are debt or loan when a bond is issued, it means the issuer (goverments or corporations) borrowing a specified amount of money from the investor for a specified period of time. Other than that, the bond is attractive investment because pay holder fixed interest income is paid on quarterly or half yearly. The fixed income interest also depend base on a percentage amount of bond. [1] All kinds of bond operate on the same basic principle. You as the investor loan money to bond`s issuer, the issuer pay

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