Holders of the Commercial Bank of Rwanda’s (BCR) bond are not willing to sell their bonds in anticipation of higher interest rates.

The Capital Markets Advisory Council (CMAC) believes that the bond holders may want to gain higher interest rates when the bond matures.

The holders may also be keeping these debt instruments because they speculate that they (bonds) could be turned into convertible bonds. 

These can be turned into shares of stock in the issuing company.

"When the holders anticipate that the instrument will be turned into a convertible bond, they may tend to keep the bonds because convertible bonds attract other investments,” Dr. James Ndahiro, a board member of CMAC said.

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