Asia Bond Monitor - November 2017 | Asian Development Bank

Asia Bond Monitor - November 2017

Publication | November 2017
Asia Bond Monitor - November 2017

Emerging East Asia’s financial markets have been stable on the back of strong global economic growth but potential risks include a further tightening of global liquidity.

Yields in emerging East Asia rose between 1 September and 31 October, tracking increases in yields in major advanced economies. While emerging East Asia’s financial markets have been stable on the back of strong global economic growth, potential risks are looming. These include further tightening of global liquidity as more central banks move to normalize monetary policy, and the longevity risk faced by financial institutions, which will require more hedging instruments in financial markets.

This issue of the Asia Bond Monitor includes three special discussion boxes. Box 1 analyzes the surge in global equity prices. Box 2 discusses the sovereign rating ceiling in international bond markets. Box 3 highlights the rationale for developing financial markets and instruments to cope with longevity risk.

The theme chapter, Foreign and Domestic Investments in Global Bond Markets, empirically investigates the determinants of foreign and domestic investors’ portfolio decisions in global bond markets. It analyzes and compares the differences in investment preferences between foreign and domestic investors in both developed and emerging bond markets.

Contents 

  • Highlights 
  • Introduction: Spillovers from Major Advanced Economies Drive Bond Yields Up in Emerging East Asia
  • Bond Market Developments in the Third Quarter of 2017 
  • Policy and Regulatory Developments 
  • AsianBondsOnline Annual Bond Market Liquidity Survey
  • Foreign and Domestic Investments in Global Bond Markets 
  • Market Summaries