IMF Working Papers

The Development of Local Debt Markets in Asia

By Mangal Goswami, Sunil Sharma

June 1, 2011

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Mangal Goswami, and Sunil Sharma. The Development of Local Debt Markets in Asia, (USA: International Monetary Fund, 2011) accessed November 21, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Bonds, Corporate bonds, Emerging and frontier financial markets, Financial institutions, Financial markets, Securities, Securities markets

Keywords: Asia and Pacific, Bank lending, Bonds, Capital markets, Corporate bond bond market, Corporate bonds, Derivative markets, Derivatives market, Emerging and frontier financial markets, Financial market, Foreign exchange, Global, Increase financial market integration, Interest rate, Investor base, Liquidity, Local currency debt markets, Market infrastructure, Market liquidity, Market stability, Regulatory framework, Repo market, Securities, Securities markets, Securities trading, Singapore dollar, Stabilization fund, Swap market, WP

Publication Details

  • Pages:

    31

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2011/132

  • Stock No:

    WPIEA2011132

  • ISBN:

    9781455259373

  • ISSN:

    1018-5941