The Street Articles

 Here are some Investing and Economic insights: Bonds are a form of debt. It is a loan from investor to a company or government. So, bond investors are paid interest. The Islamic equivalent of bonds are called sukuk. Sukuk form a large chunk of the Malaysian bond market. As at end-October 2020, 63.5% of the Malaysian total bond market size of close to RM1.6 trillion1 were sukuk. Why do government issue bonds / sukuk? Government issue bonds / sukuk to raise money for development expenditures, working capitals and to promote the growth of the country. Malaysian Government Securities (MGS) and Government Investment Issues (GII), which are long-term bonds, are issued by the Malaysian government to raise money for development expenditures. Meanwhile, Malaysian Treasury Bills (MTB) and Malaysian Islamic Treasury Bills (MITB) are short-term bonds issued to meet the government’s working capital requirements. Why do companies issue bonds / sukuk? Companies issue bonds or sukuk to raise money to