The Development of Local Debt Markets in Asia

Mangal Goswami and Sunil Sharma ()

No 2011/132, IMF Working Papers from International Monetary Fund

Abstract: The paper makes an assessment of the progress made in developing local debt markets in emerging Asia. Market development has been limited by hurdles confronting borrowers and lenders, current and potential liquidity providers, and insufficient support from government policies and regulations. Besides fostering a credit culture to deepen local debt markets, the issue of critical size can be addressed through an integrated regional market for local currency bonds that provides greater scale, efficiency, and access. With rapid economic growth in Asia, a key challenge is to generate financial assets that can provide the underlying collateral for expanding fixed-income markets, and hence domestic and regional investment opportunities.

Keywords: WP; interest rate; corporate bond bond market; financial market; foreign exchange; market liquidity; Capital markets; local currency debt markets; investor base; liquidity; bank lending; derivative markets; regulatory framework; derivatives market; stabilization fund; repo market; Singapore dollar; securities trading; market stability; increase financial market integration; swap market; market infrastructure; Securities markets; Emerging and frontier financial markets; Corporate bonds; Bonds; Securities; Asia and Pacific; Global (search for similar items in EconPapers)
Pages: 31
Date: 2011-06-01
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Citations: View citations in EconPapers (16)

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