Erasmus, Coert Frederik (2014) The Applicability, Purpose and Impact of Bond Options: The South African Perspective. Masters thesis, University of south Afrrica.
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Abstract
In South Africa, over-the-counter (OTC) bond options may be used in order to either hedge or speculate. However, since 2001, this market deteriorated significantly. The current research assessed the role of the local bond option market, reasons for the deterioration of the South African OTC bond option market, and how this bond option market could possibly be restored as a primary hedging instrument. The opinions of individuals operating in this market were obtained using a questionnaire. In the opinion of the respondents, wide bid–offer spreads, regulatory interference's and poor participation within this market caused market deterioration. The market could be restored as a hedging instrument if effective market integration exists, interbank trading regularly takes place, liquidity was enhanced, transparency increased and investor knowledge improved. Future research could focus on regulatory transformation, the types of derivatives used for hedging, and an assessment of appropriate continuous professional development interventions for investors.
| Item Type: | Thesis (Masters) |
|---|---|
| Uncontrolled Keywords: | Bond option, bond, derivatives, deterioration, emerging market economy, improvement, Johannesburg Stock Exchange (JSE), opinions, over-the-counter, South Africa. |
| Subjects: | H Social Sciences > HF Commerce |
| Divisions: | Africana |
| Depositing User: | Mr Jude Abhulimen |
| Date Deposited: | 09 Jan 2017 11:25 |
| Last Modified: | 09 Jan 2017 11:25 |
| URI: | http://thesisbank.jhia.ac.ke/id/eprint/1339 |
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