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Bonds

Bonds are fixed income securities issued to lenders of long-term loans, with a maturity date. They provide returns in the form of fixed periodic payments.

Instruments Traded

Trading

Instruments Traded

Instruments traded on the Malaysian bond market comprise conventional and Islamic papers which includes the following:

  1. Government Securities
    Malaysian Treasury Bills (MTB) and Malaysian Government Securities (MGS) are short term and long term papers issued on conventional basis by the Malaysian Government to manage the economy. Government Investment Issues (GII) are intended for similar purposes but are issued based on Islamic principles. MGS Floating Securities are issued based on spread basis.
  2. Bank Negara Papers
    Bank Negara Bills (BNB) and Bank Negara Notes (BNN) are issued by the Central Bank for its market operations.
  3. Cagamas Papers
    Cagamas Berhad is the National Mortgage Corporation whose business is to promote the secondary mortgage market in Malaysia. Cagamas funds its business operation by issuing Notes, Bonds & Sanadat. Sanadat is an Islamic bond.
  4. Private Debt Securities (PDS)
    Private debt securities comprise short and long term debt securities issued by private corporations on conventional or Islamic basis.
  5. Asset Backed Securities (ABS)
    ABS are securities backed by assets such as mortgages, loans, receivables, etc and are issued by private or quasi Government corporations. ABS is also issued on an Islamic basis in Malaysia.