Good Practices in Developing Bond Market: with a focus on government bond market
ASEAN+3 and Asian Development Bank (ADB) together issued a paper, "Good Practices in Developing Bond Market," which discusses key building blocks of bond markets, particularly government bond markets, and successful efforts of selected countries in developing them.
ABMI: Policy Maker Achievements and Challenges
This paper presents a comprehensive review of what ASEAN+3 policy makers have achieved under the Asian Bond Markets Initiative (ABMI) and what they are planning to do next over the medium-term. It also provides recommendations for policy makers’ consideration in addressing new sources of market volatility and other challenges within and outside the framework of ABMI.
Facilitating Foreign Exchange Risk Management for Bond Investments in ASEAN+3
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 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.
Local Currency Bonds and Infrastructure Finance in ASEAN+3
The need for infrastructure investment among ASEAN+3 members is well documented, with estimates for needed investment through 2020 reaching as high as US$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?
Broadening the Investor Base for LCY Bonds
Since the launch of Asian Bond Markets Initiative (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.