The Development of Local Debt Markets in Asia

Author/Editor:

Mangal Goswami ; Sunil Sharma

Publication Date:

June 1, 2011

Electronic Access:

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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.

Series:

Working Paper No. 2011/132

Subject:

Bonds Corporate bonds Emerging and frontier financial markets Financial institutions Financial markets Securities Securities markets

English

Publication Date:

June 1, 2011

ISBN/ISSN:

9781455259373/1018-5941

Stock No:

WPIEA2011132

Pages:

31

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