Study project (MBA)--University of Stellenbosch, 2002. / ENGLISH ABSTRACT: The bond market is an important economic element of both developed and
developing economies. The after effects of the Asian crises have prompted
arguments that the existence of well-functioning domestic bond markets would have
helped to mitigate the impact of shocks in the financial systems of the emerging
markets both by providing an alternative source of funding to bank lending and by
exposing investors rather than taxpayers to negative shocks.
Comparative analyses of various emerging markets were done by using data from
the IMF, IFC and various publications. Data from the developed nations, in particular
the United States were used as a source of reference because corporate bond
market has been used successfully in these markets. Given the limited sources of
reference locally, data was sourced mainly from the Bond Exchange of South Africa
publications, financial magazines and newspapers, workshop presentations and
comments from various bankers, economists and fixed-income analysts.
The report starts by looking at the size and growth of the market in comparison with
its counterparts in the emerging markets. The reasons, facts, figures and arguments
for such growth are thoroughly discussed.
This study presents comprehensive macro-economic arguments on the development
of the corporate bond market and the benefits they offer to corporates as an
alternative source of long-term capital debt funding. The quantitative and qualitative
model that assists corporates with the decision making process of whether to issue a
bond to fund the capital structure is discussed.
The study undertook a quantitative survey of the elements of corporate bond market
in terms of coupon rates, bond pricing, risks (namely, credit rating risk and default
risk) and the performance of the market, in particular the marketability, liquidity and
returns. The investment strategy in the riskier part of the bond market is introduced
and discussed, though limited in terms of development. The report concludes by mentioning the successes of the bond market by identifying
the existing gaps in the market and the future development of the corporate bond
market in South Africa, especially to attract more issuers to the net. / AFRIKAANSE OPSOMMING: Die lang termyn effekte mark, is "n belangrike finansierings element van beide die
ontwikkelde en die ontwikkelende ekonomië. Die Asiese krises het as nagevolg
gehad dat daar gefokus kon word op die moontlik versagtende invloed van "n goed
gedefinieerde funksionele binnelandse effekte mark. Dit kon van die nagevolge
versag het deur die daarstelling van "n alternatiewe finansierings bron en die
daaropvolgende blootstelling van beleggers in die plek van die belastingbetalers.
Vergelykende ontledings van verskeie ontwikkelende mark ekonomië is gedoen deur
gebruikmaking van inligting verskaf deur die I.M.F. en I.F.K. asook ander publikasies.
Inligting oor ontwikkelde lande in besonder die V.S.A. is gebruik as vergelykende
anelise omdat die lang termyn effekte mark suksesvol bedryf word in hierdie markte.
Weens die gebrekkige beskikbaarheid van binnelandse bronne i sinligting meestal
vanaf die publikasies van die Lang Termyn Effekte beurs van Suid Afrika, finansiële
tydskrifte, koerant publikasies, werkswinkel voorleggings asook gespekke met
bankiers, ekonome en vaste koers beleggings ontleders verkry.
Hierdie studie stuk, vergelyk in die eerste deel die omvang en groei van die mark in
vergelyking met ander markte in ontwikkelende lande. Die verskeie groei
veranderlikes asook redes en feite rakende groei word in diepte bespreek.
Vergelykende makro ekonomiese bewyse vir die ontwikkeling en vestiging van "n
lang termyn effekte mark, en die voordele daarvan vir Maatskappye as "n
alternatiewe bron van kapitaal word in hierdie studie aangebied. Die kwantitatiewe en
kwalitatiewe model vir gebruik deur Maatskappye om tot besluitneming te kom
rakende die gebruik van effekte om kapitaal benodighede te befonds word ook
bespreek.
Die studie het ook "n kwantitatiewe opname ingesluit rakende die verskeie elemente
van d ie effekte mark en 0 nder a ndere is daar nad ie koepon koerse, effekte prys
bepaling, risiko (naamlik krediet en dishonorering), mark tendense en opbrengste,
met besondere verwysing na bemarkbaarheid, likwiditeit en opbrengs. Beleggings strategie in die meer riskante deel van die lang termyn effekte mark word ook
bespreek, maar dit is beperk weens die beperkte ontwikkeling daarvan.
Afsluitend word verwys na verskeie sukses faktore in die effekte mark deur die
indentifisering van bestaande gapings, en die toekomstige ontwikkeling van hierdie
spesifieke mark in Suid Afrika. Die doelstelling om meer toetreders na die mark te lok
as deelnemers deur die uitgifte van lang termyn effekte word ook benadruk.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/52654 |
| Date | 12 1900 |
| Creators | Ndlovu, Josiel |
| Contributors | Biekpe, N., Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | en_ZA |
| Detected Language | Unknown |
| Type | Thesis |
| Format | 99 p. : ill |
| Rights | Stellenbosch University |
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