Corporate Bond Market: The Case of Bangladesh

Afia Akter, Rabiul Hasan Himo, and Abu Bakkar Siddik

A sound financial system can ensure economic development of a country. In this system, bond market can play a vital role in Bangladesh. Bond market provides long term finance to issuers by creating alternative source of finance, besides it also provides steady source of income to investors. The study has explored the prospects of corporate bond market and identified major impediments to develop corporate bond market in Bangladesh. We have collected secondary data from various sources. The primary data have been collected from investors of Dhaka Stock Exchange (DSE). A total of eighty investors from fifteen brokerage firms were surveyed with the self-administrated questionnaires followed by in-depth interviews. The primary data have analyzed to explore investors’ perception and reveal major hindrances to develop corporate bond market in Bangladesh. Finally, we concluded that there is an enormous prospect to develop long term corporate debt market in Bangladesh. In this regard, it has suggested that policy makers should create adequate platform to extend existing bond market.