Impact on Pesaka Astana case to be only felt over the long term

FUND managers and bankers are maintaining their issuance projections and targets for corporate bonds this year although they agree the actual impact of the recent ruling of Pesaka Astana (M) Sdn Bhd’s case on the debt market will only be felt over the long term.

While the case has put a dent on the corporate bond scene and affected local and foreign investors’ confidence, industry observers feel that investment banks and bond trustees have to tighten their risk management processes and fiduciary duties to investors.