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    Equity Bank - Bond Market Research Survey Answers

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    Equity Bank - Bond Market Research Survey Answers

    Uploaded by

    isaac munene
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    © All Rights Reserved
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    1 views3 pages

    Equity Bank - Bond Market Research Survey Answers

    Uploaded by

    isaac munene

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    LIST OF SURVEY QUESTIONS FOR THE BOND MARKET RESEARCH

    Target # Question Purpose Category Response


    Investor 1. A. What is the preferred tenor of the bonds To determine the tenor Tenor A. 5yrs and
    held in your portfolio? appetite the investor has less
    B. Do you have restrictions to the tenor of and a rough idea of their B. Non
    bonds that you purchase? Investment Policy Statement
    and the issuer an idea of the
    tenor.
    2. 1. What are your expectations in terms To determine the investors Pricing & Yield 1. Policy rate
    of inflation and policy rates? expectation of interest rate to be at 7%
    2. What are your pricing and to give the issuer an idea by end
    considerations? of the forecasted 2024 and
    3. Do you undertake a risk based environment inflation to
    pricing when investing in a bond? remain
    (credit rating, use of proceeds, below 5%
    issuer, sector analysis) 2. Tenor and
    4. What are your pricing margins for: risks
    3. For
    a) Secured bond corporate
    b) Blue chip bond bond yes,
    c) Unsecured blue chip credit risk
    d) Secured mid cap/SME rating
    e) Unsecured mid cap/SME 4. A) No
    margin on
    secured
    3. 1. Would you consider investing in a To determine the investors Coupon 1. Yes.
    floating interest bond? preference of coupon 2. Same
    2. What would you consider an structure tenored gvt
    appropriate benchmark for this bond+
    floating interest rate bond? margin 2%

    4. Do you have an allocation limit to corporate To determine whether the Regulatory framework Yes
    bonds? investor is limited by
    regulators when investing in
    corporate bonds
    5. 1. Do you consider governance of the To inform the issuer on the Issuer preference 1. Yes
    issuer when investing in the bond? preferred issue profile 2. Governance
    2. What type of issuer profile would be of the
    of interest to you? issuer is
    looked at
    when
    analysis
    6. What is your average participation size? To give the issuer an idea of Participation Between 2-3bn
    the subscription rate
    7. 1. Would you prefer a listed or unlisted To determine the preference Structure 1. Listed
    instrument? in terms of cash flows. 2. Amortized
    2. Would you prefer anaamortizing as It is less
    bond or a bullet bond? What informs riskier
    your preference?
    8. What sectors do you prefer investing in? To highlight the sector Sector preference Almost all sectors
    preference
    9. 1. Are you required to invest in a bond To assess the risk tolerance Risk Profile 1. Yes. BB
    that has a credit rating? If yes, what of the investors 2. YES,
    is your lowest acceptable rating? 3. YES
    2. Is ranking a factor when investing a
    bond?
    3. Is a guaranteed structure preferable All these factors
    to you in exchange of a lower can be changed by
    return? the credit risk
    analysis

    10. In your investment consideration do you To inform the appetite of ESG Considerations ESG related
    have more appetite to have ESG related investors when making investment can
    securities (Green bonds,SLB bonds, etc) investment decisions aligned influence our
    with ESG goals decisions
    11. What types of spreads or premiums would Spreads and premiums Gvt bond+ a margin
    you take into consideration for a corporate
    bond vs a government bond

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