Bond Market in Bangladesh

BOND MARKET IN BANGLADESH Bond trade dumb effect acts as buffer of equity marketplace. This market in Bangladesh has been found in truth inefficient with respect to number of issues, spate of trade, number of participant, long yield curve, interest straddle constitution etc. The discover has found that the coat of debt market of Bangladesh is precise low as compared to other SAARC Countries; has huge growth potentiality; and identified classical impediments to the growth and development of Bond market place in Bangladesh a good deal(prenominal) as risk and return factor, runnyity and political relation policy factor, issue management factor, investment policy factor, macro-economic and regulative factor, and market & issue related factor. The study has suggested some significant policy measures such as regulatory change, shaping of long-run yield curve, offering fiscal benefits, encouraging companies facelift silver with bodied bond issues, keeping tr easury gait low etc. for the development of Bond Market in Bangladesh. Bangladeshs bond market represents the smallest in South Asia, accounting for lonesome(prenominal) 12 per cent of the countrys gross domestic product (GDP).At US$7.35 billion, the size of the countrys bond market is far smaller than the banking assets, estimated at around $32 billion-equivalent to more than 50 per cent of GDP.

It is move that Bangladesh, which is much larger than Nepal in terms of population, land athletic landing field and other measures, has the smallest bond market in the region. In Bangladesh,banks liquid constitute the main source of funds for the corporate sector. ! In Bangladesh, the bond market has only eight corporate bonds.All were issued by means of private placement partly because of the publics little confidence in corporate debt as stemming from the large-scale default of publicly offered corporate bonds in the financial markets history. As the countrys bond market change less-developed, the report said Bangladesh should improve the efficiency of the primary market for government...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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