The Asian bond markets can be broken down into two segments:

• the regional bond market concentrated in USD-denominated debt instruments; and,
• local currency bond markets.

The regional bond market offers a funding base in foreign currency (primarily USD) for larger issuers such as supranationals, governments, and global and top-tier local corporate entities. Until recently, large debt raisings were sourced mainly from this market.

A country and/or company credit rating by one of the global rating agencies is the normal prerequisite for organizations and governments accessing the regional bond market. A reference table of current credit ratings is linked below.

The growth of local currency bond markets has allowed large-scale issuers to diversify funding sources while giving locally-based corporations another alternative to traditional bank financing.

Securities issued under Islamic shari'a principles are covered in the individual market pages of Brunei Darussalam (Brunei), Indonesia, and Malaysia. Significant attention has been paid to the development of this asset class in these markets.

Asset securitization in the region has also grown in recent years. The underlying asset range used in these transactions has expanded from initial residential mortgages and credit card receivables to toll road revenues and non-performing bank loans. The list of the region's asset-backed securities transactions now includes securitization of a sovereign asset. For more information on market regulations and securitization structures, please refer to the individual market home pages.