Conclusion  The stable inflation environment means that the fixed income structure of bonds has become relatively more attractive to investors with risk profiles that demand a steady real rate of return. Also, economic growth has been more robust in recent years amid heightened investor optimism about the country's future prospects.
Improved economic fundamentals translate into enhanced growth prospects for South African corporates and a concomitant need for long-term debt financing. The development of this sector of the bond market offers borrowers in the private sector access to long-term finance from the capital markets.