Delving into the stock market: Where bonds trade in South Africa

Julie Brownlee, Fsp Invest, 04 Feb. 2015

Tags: bonds, south african bond market, debt market, jse, where bonds trade, investing in bonds, buying bonds, bond market

If you invest in shares in South Africa, it all happens on the Johannesburg Stock Exchange, otherwise known as the JSE.

The JSE is South Africa’s stock market. But the JSE isn’t just home to the buying and selling of shares. It’s also where South African bonds trade.

Let’s have a closer look…

The ins and outs of the JSE

The JSE is based in Sandton in Johannesburg. It’s the place where all South African listed stocks and shares trade. This is the JSE’s Equity Market.

That doesn’t mean that’s where you stock broker is though. Your stock broker uses a specially designed computer network to trade on the JSE from his office. This is the case for all members of the JSE.

South Africa’s bond market

Up until quite recently, South African issued bonds traded on the Bond Exchange. But in 2007, the JSE took over the exchange and now runs it. The Bond Exchange is now called the Debt Market.

The South African government and some large companies and corporations issue the bonds on the JSE’s Debt Market.

According to the JSE, around R25 billion worth of bonds are traded every day!

Investing in bonds

Unless you have a lot of money to invest, the bond market can be quite inaccessible for investors, but you do have other options.

You can buy RSA retail bonds. These aren’t tradable, like the bonds on the JSE’s Debt Market. But they offer you an easy way to buy bonds from as little as R1,000.

Another route is to buy into unit trusts which focus on bonds and the fixed-income market. The fund manager who run these unit trusts will deal on the JSE’s Debt Market to buy bonds for their funds.

So there you have it, where bonds trade in South Africa.

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