If you're looking for cheap, safe investments immune from the market's sharp fluctuations, look no further than bonds. Governments as well as companies worldwide depend on borrowing money from the public by issuing bonds, considered a cheap means of finance when compared to bank loans or capital increases in the case of companies.
Bonds also enjoy a high degree of safety compared toshares, which are victims of marketvolatility.
Despite their advantages, however, bonds are not that popular in Egypt. The bulk of investments in the capital market is channelled to shares. While the volume of share transactions over the past year amounted to LE24 billion, bonds transactions were estimated at less than LE3.80 billion. Market experts attribute the bond market's poor performance to the limited variety of goods which are traded in it. The market is relatively small since it includes only government treasury bonds issued in 1995 and 1997, short-term treasury bills and less than 20 corporate bonds.