ADB : Asia Bond Monitor – June 2015

The Asia Bond Monitor reviews recent developments in East Asian local currency bond markets along with the outlook, risks, and policy options. This issue includes a special section on Bond Financing for Renewable Energy.

Emerging East Asia’s bond markets were volatile due to rising global concerns over the unresolved Greek debt crisis and possibility of an interest rate hike in the United States (US). Global interest rates, which had been falling up until April, started picking up in early May. Contributing factors to the recent increases include protracted negotiations over the Greek debt crisis, firmer oil prices, improving economic indicators in the US in April–May, and faster first quarter of 2015 (1Q15) Gross Domestic Product (GDP) growth in the eurozone. As a result, the region’s bond yields have also moved upward since the beginning of May.

The local currency bond market in emerging East Asia continued to expand in 1Q15 to reach US$8.3 trillion at end-March. Growth, however, moderated on both a quarter-on-quarter and year-on-year basis.

The three largest bond markets in the region were those of the People’s Republic of China (PRC), the Republic of Korea, and Malaysia. The PRC led the region in terms of size for both government and corporate bonds. Malaysia is home to the largest sukuk (Islamic bond) market in the region, with more than half of its local currency bond stock comprising sukuk at end-March.

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About AIWMI

The Association of International Wealth Management of India (AIWMI) is a not-for-profit organization and a globally recognized membership association for finance professionals. AIWMI primarily focuses on the broad and strategic role of developing a more robust and forward-looking training infrastructure for the financial services sector and to promote more active industry involvement and collaboration in training and continuing education. AIWMI is offering advanced international certification programs along with a wide variety of high-quality executive education programs. AIWMI programs combine state-of-the-art knowledge and skills with practical experience and insights into the functioning of the financial sector. All AIWMI courses and educational events have an intense and pragmatic curriculum. Participants are exposed to the latest developments within the financial services sector. AIWMI plays a key role in guiding the development of the financial services sector. AIWMI works with key industry participants’ viz. the Government, the Regulators, the Industries/Associations, the Corporate, the Media and the General Public to achieve its objectives. Besides enhancing technical competence and professionalism in the industry, AIWMI organizes events and facilitates discussions to promote best practices in leadership and talent development in the financial sector with an aim to become Asia’s premier center of excellence for financial education.

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