Corporate debt fades on Chase, Imperial defaults - 8 months ago, 11 July 19:00
The popularity of corporate bonds at the Nairobi bourse has dropped sharply due to a lack of clear compensation policy and may remain so unless Chase Bank and Imperial Bank bondholders get their cash back.
Capital Markets Authority (CMA) says the absence of a clear policy and action plan to reimburse bond investors whose funds remain locked in the banks has reduced interest in the securities.
“Activity in the corporate bond market in the years leading to 2015 was fairly active until the two issuances brought an unexpected drought in this market,” said the CMA in a recent study on low uptake of products at Nairobi Securities. Exchange.
“The market seems to have taken a back step in the active issuance of corporate bonds as investors who invested in the two bonds still seek recourse on their investments.”
Only one corporate bond has been issued in the last two years against 28 Treasury ...
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