The Philippine domestic bond market is dominated by bonds issued by the national government, which account for 88% of the total market–leaving corporate bonds with only 12% of the total market. Total bonds outstanding at end year 2008–PHP2.5 trillion–were larger than either the PHP2 trillion loans outstanding in the banking system or the approximately PHP2.3 trillion of the equity market’s market capitalization. Although the size of the Philippine corporate bond market is small, it is growing rapidly and is up by 54% year-on-year (LCY base) in 4Q08, a growth rate approximately the same as that of the PRC corporate bond market.