The performance of bonds in Bangladesh market

Abstract

This report begins with a compact view of Unilever; its glorious history, sustained growth, sustainable goals, financial and company statistics, and a snapshot of Unilever Bangladesh Ltd. Following, the introduction talks about my topic of bond performance in Bangladesh. Other key point I outlined include rationale, scope, limitation, objective and research questions. In the literature review I evaluated the studies about Bond performance. The 3 articles I covered are as follows:  Measuring Corporate Bond Mortality and Performance  The Investment Performance of Low-grade Bond Funds  Measuring the timing ability and performance of bond mutual funds The study is proceeded in a systematic manner with humble assistance from my Faculty on the topic selection and data provision. Thus, the data I used for research is secondary in nature. My analysis continues in the same path walked by Cornell & Green (1991). I factored Monthly Bond Return against the 5 years Treasury Bond Cut-off Yield and monthly returns of the DSEX index. I made 3 different equations for the 3 bonds in the market. The regression revealed that all 3 of the bond returns have positive β coefficient with DSEX Index return. Conversely, none of the 3 bonds are affected by Treasury bond yield. Hence, I feel there is more opportunity to explore the field of bond market. Moreover, my research can be further continued by adding more factors that impacts the bond return. To sum up my study, I answered the research questions I had. The answers cover that the return on bonds are not up to the level of the Index return. Additionally, the bond returns were seen to be following the DSEX return direction in general. Finally, this research indicated that the return on bonds were not satisfactory for the investors.