INTRODUCTION/SITUATION

According to an article created by Vice News, there are 55 people who die in the
Philippines everyday because of the lack of clean water. As one can see clean water is
greatly needed by all people. As a student who is lucky to be given all the necessities
needed in life it would be normal not to think of this because we normally do not notice
it. However, we need to. According to Katrina Arianne Ebora, who works for UNICEF’s
Water, Sanitation and Hygiene program in the Philippines stated that “Over 30 million
people in the Philippines do not have access to improved sanitation facilities.” Also,
according to the PIS by 2050 the population of the areas with poverty in Manila will
reach over 9 million! With the rising population of the Philippines there will be a problem
with the economy of clean water because there will be too much demand for the supply
of water. To explain the effects of the water shortage around the Philippines we must
look at its causes, understand its demand and supply as well as the elasticity of clean
water. What is A Shortage? Before we talk about the different effects of the water
shortage in the Philippine economy. We must first define what a shortage means. As I
have learned in class, a shortage is when there is an excess demand for the quantity
supplied. For example, if there are 10 pieces of ice cream and there are 20 students
who want it, then there will be only 10 students whose demands are met while the
others will not be able to be given anything. In economic terms: Qd (quantity demanded)
> Qs (quantity supplied) These two will be talked about later into the blog. What are the
causes of the Shortage? Decreasing amount of places to gather clean water: Aside
from the known factors that cause the decreasing amount of clean water such as El
Nino and climate change, there is another factor that is not really talked about.

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.