Category: Money

The Colombo Stock Exchange on Wednesday sent out calls to admit trading members to trade on its new debt trading system, the DEX.Trading members are second tier brokers, with access limited to dealing in corporate debt and government securities.rn rnProspective members need a minimum Rs. 25 mn capital and the capacity to develop clientele for […]

Primary Dealers in government debt were asked to raise their capital this month as the Central bank tried to strengthen the dealer network.The new regulations for dealers in the primary market for debt came in to effect at the beginning of the month.Primary dealers now have a minimum of Rs. 150 mn in Tier I […]

The Central Bank quote s new money market auction started off on Monday, with the bank offering and accepted bids for Rs. 6 bn at 9.26 percent.Earlier, dealers had put in bids worth Rs.13.4 bn.rn rnThe market is flushed with Rs. 13.6 bn in excess liquidity, and dealers were expecting the bank to auction the […]

The Central Bank will start open market operations for the money market on Monday. The market friendly move will give the Central Bank a new monetary policy instrument to influence short-term rates.Central Bank says market participants will play a greater role in determining over night interest rates under its plan to introduce open market operations.rn […]

The Central Bank has issued a draft guideline to allow primary dealers to transact in derivative instruments.The guidelines include limits for credit risks and capital adequacy exposures.rn rnThe move comes as market players met on Tuesday to try and activate the local derivative market.rn rnParticipants at a seminar organised by the Primary Dealers Association lamented […]

The Asia Capital Group on Monday disposed its shareholding in its associated company, Capital Alliance Ltd., for Rs. 36 mn.Capital Alliance which specialises in debt market transactions, secured a primary dealer licence last November.rn rnTwo years ago, Asia Capital floated the debt market operation taking up a 20 percent stake for Rs. 20 mn. rn […]

The Primary Dealers Association is meeting industry experts on Tue. to discuss ways to promote interest rates swaps and forward rate agreements.Talks by resource personnel invited by the association will centre on International Swap Dealers Association master agreement, taxation, accounting and documentation issues that prevent these two derivative instruments from flourishing.rn rnThe three-hour brainstorming session […]

Seylan Bank on Tuesday tied up with Australias Tyndall Investment Management to launch Sri Lankas first ever international bond fund.Initially, the new fixed-income Seylan International Bond Fund will manage US$ 16 mn of Seylan Banks foreign currency assets of over US$ 50 mn.rn rnWith over A$ 9 bn under its management, Tyndall is a member […]

The Central Bank said Tuesday it was extending its yield curve further by issuing a 15-year bond this week.The maiden Rs. 1.5 bn issue carries a 8.5 percent coupon rate as opposed to the quarterly and half-yearly coupons offered on present treasury bonds.rn rnA further Rs. 1 bn will be raised through a 10-year bond.The […]

Seylan Merchant Leasing, a Seylan Merchant Bank subsidiary, is issuing a Rs. 50 mn four year unsecured, subordinated, redeemable and unlisted debentures to be utilised for its leasing activities.A further Rs. 50 mn would be raised in the event of an oversubscription.Interest rates would range from 14.5 percent, with interest payment annually, to 14 percent, […]

The governments inaugural 10-year bond issue to one billion rupees was oversubscribed by nearly eight times on Friday.The bonds carry an annual coupon of eight and a half percent and a nine percent yield.rn rnHowever, at Fridays close, 5-year bonds were trading at 9.8 percent on the secondary market.rn rnDealers expect yields to slip further […]

The governments inaugural 10-year bond issue to raise Rs. 1 bn was oversubscribed by nearly eight times on Friday.The issue carries an annual 8.5 percent coupon, as opposed to the quarterly and half-yearly coupons offered on present treasury bonds.rn rnThe Central Bank said it accepted Rs. 1 bn worth of bids at a 9 percent […]