Skip to main content
SpringerLink
Log in
Book cover

Encyclopedia of Finance pp 655–663Cite as

The Asian bond market

  • Reference work entry

  • 6147 Accesses

Abstract

One major factor that led to the 1997 Southeast Asian financial crisis was the reliance of the afflicted nations on heavy borrowing from western banks. The crisis has shown the massive need for establishing a regional bond market. Given the huge foreign reserves held by Asian central banks, at present, it is crucial to create a vehicle in order to preserve Asian capital within the region.

Recent progress has been made in the direction of creating regional bond markets in the areas of Asian Bond Fund (ABF) that deals in foreign currency and Asian Basket Currency (ABC) bonds that deals in local currency.

The past few years have seen major improvements in the issuance of Asian government bonds. Yet, the area of corporate bonds in the region still remains clearly underdeveloped due to the lack of credit ratings at investment-grade. Addressing the issue of ratings is one of the real challenges that must be overcome before the Asian region could have a viable bond market.

Keywords

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (Canada)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   329.00
Price excludes VAT (Canada)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

References

  1. Alba, P., Hernandez, L., and Klingebiel, D. (1999). “Financial liberalization and the capital account: Thailand 1988–1997.” Working Paper, World Bank.

    Google Scholar 

  2. Allen, F. and Gale, D. (2000). Comparing Financial Systems. Cambridge, MA: The MIT Press.

    Google Scholar 

  3. APEC (1999). “Compendium of sound practices, guidelines to facilitate the development of domestic bond markets in apec member economies.” Report of the Collaborative Initiative on Development of Domestic Bond Markets.

    Google Scholar 

  4. Boot, A. and Thakor, A. “Financial system architecture.” Review of Financial Studies, 10(3): 693–733.

    Google Scholar 

  5. Castellano, M. (1999). “Japanese foreign aid: a lifesaver for East Asia?” Japan Economic Institute, 12 February 1999, 6A, 5.

    Google Scholar 

  6. Claessens, S., Djankov, S., Fan, J.P.H., and Lang, L.H.P. (1998). “Corporate diversification in East Asia: The role of ultimate ownership and group affiliation.” Working Paper, World Bank.

    Google Scholar 

  7. Dalla, I., Khatdhate, D., Rao, D.C.K., Kali, Jun, L., and Chuppe, T. (1995). “The Emerging Asian Bond Market.” Washington, DC: The World Bank.

    Google Scholar 

  8. Emery, R.F. (1997). The Bond Markets of Developing. East Asia, Boulder, Colorado: Westview Press.

    Google Scholar 

  9. Goldsmith, R. (1965). The Flow of Capital Funds in the postwar Economy, Chapter 2. New York: National Bureau of Economic Research.

    Google Scholar 

  10. Goldsmith, R. (1985). Comparative National Balance Sheets: A Study of Twenty Countries, 1688–1978., Chicago: University of Chicago Press.

    Google Scholar 

  11. Hakansson, N.H. (1992). “Welfare economics of financial markets.” In J. Eatwell, M. Milgate and P. Newman (eds.) The New Palgrave Dictionary of Money and Finance, volume 3. London: MacMillan Press, pp. 790–796.

    Google Scholar 

  12. Hakansson, N.H. (1999). “The role of corporate bond market in an economy — and in avoiding crisis.” Working Paper, University of California, Berkeley.

    Google Scholar 

  13. Herring, R.J. and Chatusripitak, N. (2000). “The case of the missing markets: the bond market and why it matters for financial development.” Asian Development Bank Institute. Working Paper 11, Tokyo, July 2000, 23–25.

    Google Scholar 

  14. Ho, R.Y.K and Wong, C.S.M. (2003). “Road map for building the institutional foundation for regional bond market in East Asia.” Second Annual Conference of the PECC Finance Forum, on Issues and Challenges for Regional Financial Cooperation in the Asia-Pacific, Hua Hin, Thailand, 8–9 July, 21.

    Google Scholar 

  15. Ito, T. (2003a). “Promoting Asian Basket Currency (ABC) bonds.” RCAST, University of Tokyo, 1 March 2003.

    Google Scholar 

  16. Ito, T. (2003b). “Asian Basket Currency (ABC) Bonds,” February 2003.

    Google Scholar 

  17. Kiang, L.H. (2003). East Asian capital markets: challenging times, A keynote address delivered at the Euromoney 10th Asia-Pacific Issuers & Investors Forum, 18 March, Singapore.

    Google Scholar 

  18. Levine, R. (1997). “Financial development and economic growth: views and agenda.” Journal of Economic Literature, 36: 688–726.

    Google Scholar 

  19. Mays, M. and Preiss, M. (2003). “Asia must put its savings to work.” Financial Times, 7: 15.

    Google Scholar 

  20. McKinnon, R.I. (1971). Money and Capital in Economic Development. Washington, DC: The Brookings Institution.

    Google Scholar 

  21. McKinnon, R.I. (1991). The Order of Economic Liberalization: Financial Control in the Transition to a Market Economy. Baltimore: Johns Hopkins University Press.

    Google Scholar 

  22. Mungthin, N. (2000). “Thai Bond market development (in Thai).” Bank of Thailand.

    Google Scholar 

  23. Nagao, Hisatsugu (2003). “Market for Asian bonds taking shape.” The Nikkei Weekly, 24 November, 39.

    Google Scholar 

  24. Oh, G., Park D., Park, J., and Yang, D.Y. (2003). “How to mobilize the asian savings within the region: securitization and credit enhancement for the development of East Asia’s bond market.” Korea Institute for International Economic Policy. Working Paper, 3 February 2003.

    Google Scholar 

  25. Ogawa, O. and Shimizu, J. (2004). “Bond issuers’ tradeoff for common currency basket denominated bonds in East Asia.” Journal of Asian Economics, 15: 719–738.

    CrossRef  Google Scholar 

  26. Pesek, W. Jr. (2005). “Dollar skeptics in Asia have prominent company.” International Herald Tribune, 3 February 2005, B4.

    Google Scholar 

  27. Rhee, S.G. (2003). “The structure and characteristics of East Asian bond markets.” Second Annual Conference of the PECC Finance Forum, on Issues and Challenges for Regional Financial Cooperation in the Asia-Pacific, Hua Hin, Thailand, 8–9 July, 21.

    Google Scholar 

  28. Sheng, A. (1994). “Future directions for Hon Kong’s debt market,” Speech at the First Annual Pan-Asia Bonds Summit, 29–30 November.

    Google Scholar 

  29. Sonakul, M.R.C.M. (2000). “Keynote address on the Occasion of the ADB Conference on Government Bond Market and Financial Sector Development in Developing Asian Economies.” Manila, 28–30 March.

    Google Scholar 

  30. Taniguchi, T. (2003). “Asian bond market initiative”. A keynote speech delivered at the ASEAN+3 High-Level Seminar on Fostering Bond Markets in Asia. March, Tokyo, Japan, 30.

    Google Scholar 

  31. Tourk, K. (2004) “The political economy of east Asian economic integration.” Journal of Asian Economics, 15(5): 843–888.

    CrossRef  Google Scholar 

  32. Tran, H.Q. and Roldos, J. (2003). “Asian bond markets, the role of securitization and credit guarantees.” The 2nd ASEAN Central Bank Governor’s Meeting, Bangkok, 8, 2.

    Google Scholar 

  33. Yam, J. (1997). “Development of the debt market, keynote address at the asian debt conference,” http://www.info.gov.hk/hkma/eng/speeches/speechs/joseph/speech_140797b.htm, 14 July.

    Google Scholar 

Download references

Acknowledgement

The author is indebted to Junji Nakagawa, Yoshinori Shimizu, and Akira Suehiro for valuable insights. I am grateful for stimulating discussions with Omar Farooq, Qi Liang, Sonia Sheikh, Ryusuke Shimizu, Kumiko Sakaim, Nariatsu Tanaka, and Bjorn Thunstrom. Special thanks to Yasuyo Mori for providing excellent secretarial help. The usual caveat applies.

Author information

Authors and Affiliations

  1. Illinois Institute of Technology, Chicago, USA

    Khairy Tourk

Authors
  1. Khairy Tourk
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Rutgers University, New Brunswick/Piscataway, USA

    Cheng-Few Lee

  2. San Francisco State University, San Francisco, USA

    Alice C. Lee

Rights and permissions

Reprints and permissions

Copyright information

© 2006 Springer Science+Business Media, Inc.

About this entry

Cite this entry

Tourk, K. (2006). The Asian bond market. In: Lee, CF., Lee, A.C. (eds) Encyclopedia of Finance. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-26336-6_67

Download citation

  • DOI: https://doi.org/10.1007/978-0-387-26336-6_67

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-0-387-26284-0

  • Online ISBN: 978-0-387-26336-6

  • eBook Packages: Business and Economics

Publish with us

Policies and ethics

search

Navigation