Bonds are your lesser-known investment product, much overshadowed by the well-known stocks and shares and the rising star, the unit trust. However bonds have a crucial role to play in financing the country's development. They provide an alternative avenue for corporations to raise capital. A mature bond market plays an important role in stabilising the overall financial system of a country.

Bonds are ideal for raising capital to fund long-term development projects, and were used to help fashion Malaysia's recovery from the Asian Financial Crisis. Over recent years, great efforts have been spearheaded by the Securities Commission to accelerate the development of the bond market and to encourage the usage of bonds as an asset option for investors, as well as a financing choice for borrowers of capital.

Securities laws have been amended to facilitate the development of the bond market, which has been growing from strength to strength. Over the past 10 years, the bond market has grown substantially in terms of trading activities in the secondary market and in terms of market liquidity.
But what exactly are bonds? We introduce bonds by presenting below some of the most frequently asked questions about bonds.