Developing Asean5 Bond Markets: What Still Needs to Be Done?
IMF Working Papers, June 1, 2011
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Bibliographic details
- Authors: Simon T Gray, Andreas Jobst, Joshua Felman, Ana Carvajal
- Published: June 1, 2011
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781455259403.001
Overview and Purpose
- Authors: Simon T Gray, Andreas Jobst, Joshua Felman, Ana Carvajal
- Publication date: June 1, 2011
- Series: Working Paper No. 2011/135
- Volume: 2011; Issue: 135; Pages: 34
- DOI: https://doi.org/10.5089/9781455259403.001
- ISBN: 9781455259403
- ISSN: 1018-5941
- Summary statement: This paper examines a range of issues relating to bond markets in the ASEAN5 (Indonesia, Malaysia, Philippines, Singapore and Thailand) — physical infrastructure including trading, clearing and settlement; regulation, supervision and legal underpinnings; and derivatives markets — and finds that the frameworks compare well with other Emerging Markets, following a decade of reform. A number of areas where further enhancements could be made are highlighted. The paper also examines the interrelationship between central bank management of short-term interest rates and domestic currency liquidity, and development of the wider money and bond markets; and suggests some lessons from the recent crisis in developed country financial markets which may be important for the future development of the ASEAN5 markets.
Key Findings
- The ASEAN5 frameworks for bond markets compare well with other Emerging Markets after a decade of reform.
- Physical infrastructure areas examined include trading, clearing and settlement.
- Regulatory, supervisory and legal underpinnings were assessed and found comparable to peers.
- Derivatives markets and their role in market development are examined.
- The interrelationship between central bank management of short-term interest rates and domestic currency liquidity influences development of money and bond markets.
- Lessons from the recent crisis in developed country financial markets may be important for future development of the ASEAN5 markets.
Areas Highlighted for Further Enhancement
- A number of areas where further enhancements could be made are identified (specific enhancements are discussed within the paper).
Subjects and Keywords (as listed)
- Subject: Banking, Derivative markets, Financial institutions, Financial markets, Financial regulation and supervision, Liquidity risk, Money markets, Securities, Securities markets
- Keywords: ASEAN, Bond markets: Bond markets, capital market, central bank, CP market, Derivative markets, derivatives market turnover, equity derivative, Global, government bond, interest rate transaction, investor, liquidity, Liquidity risk, market, market development, market infrastructure, market integrity, money market, Money markets, OTC derivative, OTC derivative market, repo market, Securities, Securities markets, securitization market, WP
Implications and Analytical Focus
- Emphasizes the importance of market infrastructure (trading, clearing, settlement) for bond market development.
- Connects central bank policy (short-term interest rate management) and domestic liquidity to broader money and bond market evolution.
- Suggests that crisis experiences in developed markets provide lessons relevant to ASEAN5 market strengthening.
- Highlights continued reform needs despite overall comparability with other Emerging Markets.
IMF Working Paper No. 2011/135 — Developing Asean5 Bond Markets: What Still Needs to Be Done?, Simon T Gray, Andreas Jobst, Joshua Felman, Ana Carvajal, June 1, 2011.