Property Reporter

OPINION is divided on the merits of government's decision to a launch a retail bond market in May.

Mike Schussler, an economist at Tradek, welcomed the move, saying it was a "good idea to get your average person in SA involved in the bond market".

"It will help with the general education of the public and hopefully give them cheaper access to the bond market," Schussler said.

However, Piet Viljoen, a fund manager for RE:CM, said yesterday that retail investors being able to buy small amounts of bonds would not change the market at all.

"There are a lot of unit trusts on the JSE that offer investors opportunity to invest in bonds. You can already buy smaller denominations of bonds," Viljoen.

The Sunday Times reported that newly appointed national treasury deputy director-general Phakamani Hadebe said government would launch a retail bond market in May, which it hoped would encourage savings.

Currently investors need at least R1m to invest in the government debt market. Most working people have exposure to this market through pension funds.

Jan 26 2004 07:20:59:000AM Nick Wilson Business Day 1st Edition