The impact of special purpose vehicle (Cagamas MBS) issues on the Malaysian corporate bonds market issues: analytical econometric study during the period 2004-2018

Abstract

This study aims to clarify the effect of special purpose vehicle on the issues of the Malaysian corporate bond market during the period 2004-2018 by studying the relationship between Cagamas Mortgage Backed Securities issue and the issuance of the Malaysian corporate bond market, which is among the most important financial market in Malaysia, Through an econometric study using autoregressive distributed lag approach during the study period, The study found a long-term equilibrium relationshipbetween the two study variables, in addition to the negative impact of the issues of special purpose vehicle on the Malaysian corporate bond market issuance, due to the weak investor confidence in the financial markets after the mortgage crisis