Philippine Bond Market Presentation

Download as pptx, pdf, or txt
Download as pptx, pdf, or txt
You are on page 1of 10

PHILIPPINE

BOND MARKET
SEB RUSSELL A. RAFIO
ELDION E. JAGORIN

1
W h a t i s B o n d m a r ke t
in the Philippines?

2
What are Bonds?
• A bond is a fixed income
instruments that represents a loan
made by an investor to a borrower.
It is also called a debt security

3
BREAKING IT DOWN
• The Philippine domestic bond market consists of
short- and long- term bonds, mainly issued by the
national government. The Philippine bond
market is dominated mainly by Treasury notes and
bonds. Although the size of the Philippine
corporate bond market is still small relative to
government bonds, it has been growing rapidly
over the years.

4
• In the Philippines, corporate bond issuance came
from various sectors, mostly banks, real estate
and telecommunication companies, toll way
operators and a beer-based conglomerate. The
growth in the region’s bond market was driven
partly by huge demand from foreign investors
looking for more attractive returns than those
available in the United States, Europe and other
developed markets.

5
Types of Securities Issued by the
National Government through the
Bureau of the Treasury
•Treasury bills (fixed-rate)
• Retail treasury bonds (RTBs, fixed-rate coupon-
bearing)Multi-currency retail treasury bonds (MRTBs, fixed-
rate coupon-bearing)
• Dollar-linked peso notes (fixed-rate) Issued by the
National Government through Other Entities
• Debt securities issued by government-owned and -
controlled corporations (GOCCs)
• Debt securities issued by government agencies

6
How do you make money
from investing in bonds?
• Par Value

• Coupon Rate

• Maturity Date

7
What are the risks of
investing in bonds?
There are risks when investing in bonds but you don’t
actually lose money in most of them.
In corporate bonds for example:
• if the company could decide to pre terminate the
bond
• If it decides to decrease the coupon rate
• When the country’s inflation rate goes higher than
the bond’s coupon rate.
• If the company goes bankrupt

8
How to invest in bonds:
For government bonds, you can go to
any commercial bank and ask if they
are selling Treasury bonds. You can
also visit the website of the Bureau of
the Treasury and check for current
bond offerings.

For corporate bonds, you can ask the


treasury or the investor relations
department of a company and ask if
they are selling or offering bonds.

9
WALA NA FINISH NA!

10

You might also like