Who buys bonds?

Mainly institutional investors such as the financial institutions, discount houses, large corporations and asset management companies (like the pension, insurance or unit trust funds). The individual/retail investors do not normally participate in the bond market because bonds are normally sold over-the-counter (OTC), in large amounts - an average investment being about RM5 million.

However the individual investor could invest in bonds indirectly by investing in bond funds. However, more bond products will be made available to the Malaysian investor in the near future. An example of a new bond product is the Bon Simpanan Malaysia Siri 03 (BSM03) released in January 2002 by Bank Negara. Read more about this product in question 9 on the different types of bonds.