Tuesday, December 17, 2019

What Fundamentals Affect the Yield of Bonds in the...

What fundamentals affect the yield of bonds (Singapore market) By: G8 Lee Kang Wee Olivia Tan Daryle- ­Ã¢â‚¬ alexis Tan Ho Guoming FIIM FNCE 102 Professor Huang Sheng Introduction As an international financial centre with about 11% of GDP from financial services, we felt it would be interesting to find out more about†¦show more content†¦Inflation, Real Interest Bond Yield Bond Yield Breakdown by Country of Risk (Refer to Appendix A) Majority of the bonds on the market are issued by companies based in Singapore, with 627 issuances. Hong Kong companies are 2nd with 36 issuances. Bonds issued by Hong Kong companies saw a spike in yield during 1997 and 1998, due to the Asian Financial Crisis that impacted Hong Kong companies the most out of the list of countries above. China saw a similar spike in 2009. Bonds issued by Singapore companies have been the most stable, with yield levels staying around 5% - ­Ã¢â‚¬  6%. 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