An Anatomy of Corporate Bond Markets: Growing Pains and Knowledge Gains

July 1, 2005

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Format: Chicago

Pipat Luengnaruemitchai, and Li L Ong. An Anatomy of Corporate Bond Markets: Growing Pains and Knowledge Gains, (USA: International Monetary Fund, 2005) accessed November 8, 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 objective of this paper is to discuss the key issues relating to the development of local corporate bond markets. We examine the requirements for local corporate bond market development, and compare and contrast experiences across both mature and emerging markets. We suggest that core aspects such as benchmarking, corporate governance and disclosure, credit risk pricing, the availability of reliable trading systems, and the development of hedging instruments are fundamental for improving the breadth and depth of corporate debt markets. The demand and supply of corporate bonds are dependent on factors such as the investor base, both local and foreign, and government policies toward the issuance process and associated costs, as well as the taxation regime. The sequencing of reforms is key to market development.

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

Keywords: Corporate bond bond market, Derivatives market, Government bond bond market, Investor base, Market country, Market infrastructure, Price discovery, WP, Yield curve

Publication Details

Pages:

25
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2005/152
Stock No:

WPIEA2005152
ISBN:

9781451861716
ISSN:

1018-5941

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