ATTRACTING FOREIGN PARTICIPATION IN ASIAN LOCAL CURRENCY BOND MARKETS: THE CASE OF THE ASIAN BOND FUND 2 INITIATIVE

The Asian Bond Fund 2 (ABF2) is a $US2bn initiative by a group of central banks in Asia and the Pacific. To promote local currency government bond markets, the fund has been investing in 8 such markets in the region. These markets have made impressive strides since the fund's inception in 2005....

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Bibliographic Details
Published in:Pacific economic review (Oxford, England) England), 2012-08, Vol.17 (3), p.415-433
Main Authors: PACKER, FRANK, REMOLONA, ELI
Format: Article
Language:English
Subjects:
Bond funds
Bond markets
Central banks
Currency
Foreign investment
Funds
Government bonds
Studies
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Summary:The Asian Bond Fund 2 (ABF2) is a $US2bn initiative by a group of central banks in Asia and the Pacific. To promote local currency government bond markets, the fund has been investing in 8 such markets in the region. These markets have made impressive strides since the fund's inception in 2005. The improvements may be traced in large part to overcoming a number of market impediments, including barriers to cross‐border investment. The ABF2 project has played an important catalytic role in market reforms aimed at removing these impediments. However, while the government bond markets have come of age, the corporate bond markets have remained immature. To develop, the immature markets would likely require the benefits of further opening up to regional issuance and investment flows.
ISSN:1361-374X
1468-0106
DOI:10.1111/j.1468-0106.2012.00591.x