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Capital Market of Bangladesh

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Submitted By badboy
Words 17477
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UNIVERSITY OF INFORMATION TECHNOLOGY & SCIENCES

Department of School of Business

Term Paper
On

Topic: Bond Market In Bangladesh .

Course Code :FIN-361.
Course Title :Corporate Finance .

Submitted To :

MD.Nazmul Hasan.
Faculty, School of Business,
University of Information Technology & Sciences

Submitted By :

NAME ID
Nazibur Rahman : 08410105
Abdullah- al Zihad : 08510061
Qazi Ismat Ahmed Rushe’d Chowdhery : 08410106

Date of Submission : 14th December, 2010.
Executive Summary

The bond market is a financial market where participants buy and sell debt securities, usually in the form of bonds. Like emerging-market countries around the world, Bangladesh could benefit from having a local-currency, fixed-income securities market. At present, its main fixed-income financial products are bank deposits, bank loans, government savings certificates, term loans, treasury bills, and government bonds and corporate debt (syndicated loans, private placement, and debentures). But in general the corporate debt market is still very small compared with the equity market. Numerous factors in Bangladesh today suggest that Bangladesh will not be able to develop an active, local-currency fixed-income market. In this paper, we will discuss the current situation of our bond market, what the drawbacks are and what may be the remedy for overcoming these drawbacks.

Bangladesh's bond market represents the 'smallest' in South Asia, accounting for only 12 per cent of the country's gross domestic product (GDP), a World Bank report said. At US$7.35 billion, the size of the country's bond market is far smaller than the banking assets, estimated at nearly $32 billion-equivalent to more than 50 per

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