Corporate bonds lure individual investors

Thursday, Apr 30, 2020 08:26

An investor follows market trading. In the quarter, individual investors bought a total of more than VND9.5 trillion (US$404.9 million) corporate bonds, — Photo

The corporate bond market attracted double the number of individual investors in the first quarter of this year compared to 2019.

In the quarter, individual investors bought more than VND9.5 trillion (US$404.9 million) of corporate bonds, of which foreign individuals only bought VND9.6 billion. The rest were bought by domestic individuals.

The proportion of individuals buying corporate bonds in Q1 accounted for 20 per cent of the total number of investors buying bonds in the market, double the figure of last year.

Real estate bonds accounted for the largest amount of bonds purchased in Q1 at approximately VND6.3 trillion.

According to SSI Securities Company, VND5.35 trillion of bonds issued in 110 batches by TNR Holdings in Q1 were all purchased by domestic individual investors.

Last year, individual investors also purchased all of the VND5.34 trillion of bonds issued by this company.

Some other real estate bond issuances in Q1 also lured individual investors such as Phu Hung Real Estate Investment JSC with VND400 billion, Paradise Bay Resort Company Limited with VND166 billion and Hai Phat Investment JSC with VND147 billion.

Bond yield rates of these real estate companies were mostly fixed from 11-13 per cent per year.

Regarding bonds issued by banks in the quarter, individual investors also bought all VND710.3 billion of bonds of TPBank and VND421.7 billion of bonds of MB Securities. The yield rates of these bonds ranged from 8.5 to 9.5 per cent per year.

The public offering of VND3 trillion of bonds issued by Masan Group also raised nearly VND1.15 trillion from domestic and foreign individual investors.

The active participation of individual investors in the first quarter helped the corporate bond market maintain growth, according to the Ha Noi Stock Exchange.

A leader of a securities company attributed investors' interest in the bond market to the increase in bond yield rates compared to last year.

Deposit interest rates at most banks also tended to decrease further, therefore investors tried to diversify their investment channels, he said. — VNS

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