Monetary Authority of Singapore Annual Report 2012/2013
Anchor of Economy

CAPITAL MARKET DEVELOPMENT

Broadening and Deepening Singapore’s Debt Capital Market

MAS continues to strengthen the SGD debt market, implementing initiatives aimed at further improving the efficiency and liquidity of the SGD corporate debt market. First, the provision of swap liquidity to primary dealer banks handling SGD debt issuance for corporations is now fully operational. MAS will now be able to support swap transactions at market determined rates to minimise uncertainties in the bond pricing process.

Second, MAS has been developing a facility to allow market makers to borrow SGD corporate bonds. The facility will improve liquidity in the secondary market and is expected to be operationally ready this year.

Third, the price discovery initiative to improve transparency for SGD corporate bonds was successfully completed in mid 2012. Complementing this is an industry-led initiative to create a SGD corporate bond index which market participants could use as a benchmark for investment management. The bond index was launched in June 2013.