Corporate bond market needs to should develop appetite for greater risk.

(From Business Day (South Africa))

Byline: Judy Green

Corporate bond market should develop appetite for greater risk THE corporate bond market is one of the successes in the fixed- income market, beginning in 1994 with South African Breweries. Issues are in billions of rands and all have good credit ratings.

For investors who want to take on a little more than the traditional interest-rate risk, the corporate bond offers some credit risk. Market share is growing, from 16% of new issues in 2004 to 28% of new issues so far this year.

If a company wishes to raise finance it has the option of going to a bank, but these lenders usually require …