SOUTH African financial services group Corpcapital Bank has received approval to set up a company to strip and market the components of domestic government bonds for the first time. South Africa’s Bond Exchange (BESA) had given the go-ahead to list the special purpose company, Stripco Ltd, to acquire the debt, break it up into interest and coupon payments and trade them on the exchange, the bank said. This means that for the first time investors in the South African fixed income market will have access to government backed, listed and tradeable strip bonds. Analysts welcomed the move, saying it would enhance liquidity and further develop domestic capital markets. Corpcapital said investing and trading in zero coupon bonds would allow investors to enhance yield, without an increase in credit risk, and achieve a greater sensitivity to smaller changes in interest rates. – Reuters