Monthly Bond Market and Rating Snapshot - August 2022 - Full Report

Report ID 6053890046910 Popularity 466 views 9 downloads 
Report Date Sep 2022 Product  
Company / Issuer Fixed Income Bond Market Update Sector Bond Market Update - Bond Market Update
Price (RM)
Normal: RM300.00        
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Malaysian Government Bond Market     

In August, total MGS/GII outstanding expanded to RM965.7 billion (July: RM958.8 billion) amid lower redemptions (August: RM8.6 billion; July: RM19.0 billion). The increase in the outstanding amount was driven by stronger MGS issuances valued at RM10.0 billion (July: RM5.0 billion). As GII issuances had come in at RM5.5 billion (July: RM10.5 billion), the total gross issuances of MGS/GII in August stood unchanged from the previous month at RM15.5 billion. Public offerings of MGS/GII were met with strong bidding interest, with BTC ratios exceeding 2.0x. YTD, the average BTC ratio stood at 2.4x.

Malaysian Corporate Bond Market     

Corporate bond issuances surged to RM12.0 billion in August after slowing to RM9.0 billion in July. The surge was driven by the quasi-government segment, which saw issuances rise to RM7.1 billion (July: RM0.5 billion). There was little contribution from the unrated corporate bond segment (August: RM1.1 billion; July: RM0.6 billion). The only segment that registered lower issuances was rated corporate bonds (Cagamas included), which saw issuances drop to RM3.8 billion (July: RM7.9 billion). YTD, total corporate debt issuance came in at RM73.5 billion, just slightly lower than the RM73.8 billion recorded in the corresponding period last year. This was mainly thanks to the support from high issuances in the rated corporate bond space.

Foreign Holdings of Local Bonds     

The local bond market recorded net foreign inflows in August. After two consecutive months of net outflows, investors have started returning to emerging markets amid easing inflationary fears. Overall, total foreign holdings as a percentage of total local bonds outstanding rose slightly to 13.9% (July: 13.7%). The share of foreign holdings in MGS, for example, improved to 36.1% (July: 35.5%). YTD, cumulative foreign flows into the local bond market improved in August, thanks to the RM5.6 billion of net foreign inflows, though it continued to be in negative territory (Jan-Aug 2022: -RM1.2 billion; Jan-Aug 2021: +RM27.4 billion).