Bond investors recorded net capital losses of Sh5.1 billion when selling their securities in the secondary market on the Nairobi Securities Exchange (NSE) in the second quarter of the year, as prices fell due to rising interest rates on new debt auctions.
Data published by the Capital Markets Authority (CMA) shows that a majority of listed bonds were being traded at prices below the par value by their holders, resulting in the loss of part of their principal.
