Broadening the Investor Base for Local Currency Bonds in ASEAN+2 Countries
Author: Asian Development Bank
Publisher:
Published: 2013
Total Pages: 85
ISBN-13: 9789292540654
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Broadening the Investor Base for Local Currency Bonds in ASEAN+2 Countries
Author: Asian Development Bank
Publisher: Asian Development Bank
Published: 2013-05-01
Total Pages: 137
ISBN-13: 9292540661
DOWNLOAD EBOOK →The Asian Development Bank (ADB) has been working closely with the Association of Southeast Asian Nations (ASEAN) and the People's Republic of China (PRC), Japan, and the Republic of Korea---collectively known as ASEAN+3---to promote the development of local currency bond markets in the region through the Asian Bond Markets Initiative (ABMI). ABMI was launched in 2002 to help channel regional savings toward long-term investments within the region. ABMI was established with the goal of improving the resilience of the region's financial systems by helping reduce the double mismatches (maturity and currency) of companies' investment financing. Since the launch of ABMI, local currency bond markets in the region have grown rapidly in recent decades in terms of size and diversity of issuers. This study was undertaken under ABMI and funded by the Government of Japan. It focuses on measures to expand the investor base for local currency bonds in ASEAN, the PRC, and the Republic of Korea, with the goal of generating greater variety in investment objectives and a wider range of investment strategies.
Local Currency Bonds and Infrastructure Finance in ASEAN+3
Author: Asian Development Bank
Publisher: Asian Development Bank
Published: 2015-07-01
Total Pages: 256
ISBN-13: 9292570153
DOWNLOAD EBOOK →The Asian Development Bank (ADB) is working closely with the Association of Southeast Asian Nations (ASEAN) and the People's Republic of China (PRC), Japan, and the Republic of Korea---collectively known as ASEAN+3---to develop local currency bond markets and facilitate regional bond market integration under the Asian Bond Markets Initiative (ABMI). ABMI was launched in 2002 to strengthen the resilience of the region's financial system by developing local currency bond markets as an alternative source to foreign currency-denominated, short-term bank loans for long-term investment financing. The need for infrastructure investment among ASEAN+3 members is well documented, with estimates for needed investment through 2020 reaching as high as $550 billion. Local currency financing of infrastructure projects has the important advantage of avoiding the currency risk that can arise when a project generating revenues in the domestic currency has foreign currency-denominated debt service requirements. This study was undertaken under ABMI and funded by the Government of the PRC. It addresses two key questions: (i) Why is local currency bond financing not more widely used for infrastructure projects in ASEAN+3? and (ii) What can be done to promote infrastructure bond financing?
Facilitating Foreign Exchange Risk Management for Bond Investments in ASEAN+3
Author: Asian Development Bank
Publisher: Asian Development Bank
Published: 2015-08-01
Total Pages: 84
ISBN-13: 9292570579
DOWNLOAD EBOOK →The Asian Development Bank (ADB) has been working closely with the Association of Southeast Asian Nations (ASEAN) and the People's Republic of China, Japan, and the Republic of Korea---collectively known as ASEAN+3---to foster the development of local currency bond markets and facilitate regional bond market integration under the Asian Bond Markets Initiative (ABMI). ABMI was launched in 2002 to strengthen the resilience of the region's financial system by developing local currency bond markets as an alternative source to foreign currency denominated short-term bank loans for long-term investment. Bond investors typically have a long position in local currency bond markets. To manage their foreign exchange (FX) risk, they may want to hedge that exposure for a period of time. They also want to be sure they can easily convert the local currency to dollars upon the sale of a bond. This study was undertaken under ABMI and funded by the Government of Japan. It reviews the FX and FX hedging markets in ASEAN+3 as they relate to cross-border investments in local currency bonds, and makes recommendations to facilitate the development of the markets and FX risk management.
Promoting Green Local Currency Bonds for Infrastructure Development in ASEAN+3
Author: Asian Development Bank
Publisher: Asian Development Bank
Published: 2018-04-01
Total Pages: 231
ISBN-13: 9292611135
DOWNLOAD EBOOK →The Asian Development Bank and the Association of Southeast Asian Nations and the People's Republic of China, Japan, and the Republic of Korea (ASEAN+3) are looking to explore options to promote green local currency-denominated bonds to meet the region's infrastructure development needs. Green bonds---supported within the ASEAN+3 framework---would help meet the long-term financing of the region especially in its transition to a low-carbon region. This publication highlights an assessment study of green bond markets in ASEAN+3, identifies the barriers to green bond market development, and proposes recommendations to scale up green bond markets for infrastructure development in ASEAN+3.
Improving the Investor Base for Local Currency Bond Markets in China, India and Indonesia
Author: Cosmina Amariei
Publisher:
Published: 2017
Total Pages: 58
ISBN-13: 9789461385529
DOWNLOAD EBOOK →"China, India and Indonesia need to develop their local currency bond markets (LCBMs) to serve as alternative sources of finance for sustainable growth. In the coming years, these three countries need to raise vast sums of funding to enable the creation of, among other things, necessary infrastructure. This report looks at the possibility to further develop the local currency bond markets in general, and ways to broaden and deepen the institutional investor base in these three emerging G-20 markets, in particular. It presents several recommendations to make the local currency bond markets more attractive to both issuers and investors, in relation to three main areas of analysis: price discovery, execution and enforcement. This report was prepared within the framework of the Emerging Market Dialogue on Finance (EMDF), which is implemented by the German Agency for International Cooperation (GIZ). It was carried out by CEPS, in cooperation with the Research Bureau of the People's Bank of China (PBoC), the Observer Research Foundation (ORF) in India and the Economic Research Institute for ASEAN and East Asia (ERIA), based in Indonesia."--Page 4 of cover.
Building Local Bond Markets
Author: International Finance Corporation
Publisher: World Bank Publications
Published: 2000
Total Pages: 300
ISBN-13:
DOWNLOAD EBOOK →Building local currency bond markets has become an increasingly important topic for emerging market countries, particularly since the Asian financial crisis. This report reviews why countries should consider building local currency corporate bond markets and how to evaluate what is needed and what might be developed. It includes eight country studies: Republic of Korea, Australia, Malaysia, India, Pakistan, Sri Lanka, Bangladesh, and Nepal. It is based on the IFC-sponsored South Asia Debt Market Symposium held in October 1999 in Sri Lanka, which brought together regulators and market participants from around Asia and other parts of the globe to discuss issues in developing local markets. The report is divided into two parts: Part I addresses why and how to develop bond markets. It begins with a chapter describing a framework for evaluating bond market development (which was used to produce the five South Asian country surveys in Chapters 11-15), and summarizes key points from the symposium papers and the South Asian situation. It is followed by presentations on the importance of bond markets and on the risk-management of bonds and the benefits of supranational issuance. Part II consists of country case studies.
Foreign Participation in Emerging Markets’ Local Currency Bond Markets
Author: Shanaka J. Peiris
Publisher: International Monetary Fund
Published: 2010-04-01
Total Pages: 21
ISBN-13: 1451988230
DOWNLOAD EBOOK →This paper estimates the impact of foreign participation in determining long-term local currency government bond yields and volatility in a group of emerging markets from 2000-2009. The results of a panel data analysis of 10 emerging markets show that greater foreign participation in the domestic government bond market tends to significantly reduce long-term government yields. Moreover, greater foreign participation does not necessarily result in increased volatility in bond yields in emerging markets and, in fact, could even dampen volatility in some instances.
The Asian Bond Markets Initiative
Author: Asian Development Bank
Publisher: Asian Development Bank
Published: 2017-06-01
Total Pages: 69
ISBN-13: 9292578448
DOWNLOAD EBOOK →The Asian Bond Markets Initiative (ABMI) was launched in December 2002 by the Association of Southeast Asian Nations (ASEAN) and the People’s Republic of China, Japan, and the Republic of Korea---collectively known as ASEAN+3 to strengthen financial stability and reduce the region’s vulnerability to the sudden reversal of capital flows. This paper also provides recommendations for addressing new sources of market volatility and other challenges within and outside the framework of the Asian Bond Markets Initiative.
Guidance Note For Developing Government Local Currency Bond Markets
Author: International Monetary Fund
Publisher: International Monetary Fund
Published: 2021-03-12
Total Pages: 157
ISBN-13: 1513573926
DOWNLOAD EBOOK →This guidance note was prepared by International Monetary Fund (IMF) and World Bank Group staff under a project undertaken with the support of grants from the Financial Sector Reform and Strengthening Initiative, (FIRST).The aim of the project was to deliver a report that provides emerging market and developing economies with guidance and a roadmap in developing their local currency bond markets (LCBMs). This note will also inform technical assistance missions in advising authorities on the formulation of policies to deepen LCBMs.
