Bond Market

The bond market (also debt market or credit market) is a financial market where participants can issue
new debt, known as the primary market, or buy and sell debt securities, known as the secondary market.
This is usually in the form of bonds, but it may include notes, bills, and so on. Bonds are interest bearing
securities. Unlike shares, bonds are not traded in another currency, but instead in percent. The investor
does not purchase a quantity of bonds, but instead a particular nominal amount. The nominal value is the
price at which the bond is to be repaid. The coupon shows the interest that the respective bond yields. The
issuer of the bond takes out a loan on the capital market and therefore owes a debt to the purchaser of the
bond. Purchasers of bonds consequently have a claim against the issuer. For this reason, bonds are also
referred to as bonds or debt securities. The credit terms for bonds, such as the rate of return, term and
redemption, are defined precisely in advance. Bonds are traded on the bond market.

In the Philippines, the domestic bond market consists of short- and long-term bonds, mainly issued by the
national government. The Philippine bond market is dominated mainly by Treasury notes and bonds.
Although the size of the Philippine corporate bond market is still small relative to government bonds, it
has been growing rapidly over the years.

One particular issuer of Bonds is the Filinvest Land Inc (FLI) who retained the highest credit rating for
its outstanding bonds worth P22 billion, according to a local debt watcher.

“The ratings assigned reflect the following key considerations: strong growth of FLI’s real estate
revenues and higher recurring income from the company’s leasing operations; conservative debt
position; and financial flexibility,” PhilRatings earlier said.said.