Research Paper
ofInternational Political Economy"Why Asian Private Bond Market has not been developed"

Graduate School of Public Policy,
Campus Asia Program
51-138083

Tatsuya OGAWA

Contents

1. Background of Research
2. Research Objectives
3. Hypothesis
4. Methodology
5. Body Part of My Paper Asian Financial Crisis
 Insufficient Coping Technique by IMF
Asian Countries gathered to made Prevention Mechanism
 Shortcoming in Bond Market exists
 Historical Context of Local Currency Bond Market
Highly Guaranteed LCY Bond Issuance System is Being Structured
 Asian Bond Market Maturity Conditions
 Lingering Shortcoming on Bond Market
6. Conclusion

1.

Background of Research
When I went to exchange in the University of Hong Kong, the thing whichsurprised me the most was international atmosphere of Hong Kong. There are various
students literally from all over the world, not only from Asia but also from West, Latin
America and Africa. There had been many active and meaningful discussions in classes
for one year. Above all, among those stimulus conversations, the thing which had
remained in my mind the most was this following question, ''In Asia there had been no
regional institution which shows independence for a long time.'' For me, that fact was
penetrating into my heart because it means that Asia had been globally unstable andtherefore, dependent. There would be many events that show emerging Asian countries'
unstable dependency on global economy. However, what I am particularly interested in
was Asian Bond Market. (ABM) As I just started studying about Asian Financial Crisis(AFC), it was more or less just about local exchange market collapse. Yet, throughstudying the case, I found out that more serious problem, in terms of the length of thepain, was bond market. There are two problems; maturity mismatch and currency
mismatch. The former is that Asian bond maturity is too short to pay back after thecrisis when local company suffered from the severe pain. The latter is that depreciatedlocal currency made Asian USD based bond hard to repay. Through this hardship, what
emerging Asian countries learned and what problem they still hold? And for the
problems, what are solutions?
2.

Research Objectives
My research objective is I want to make a proof which makes people convinced

more about Asia’s economy growth. Why I said that is I found a data which shows Asian
economy has some room to grow more than now
Chart1.

This graph shows how much each Southeast Asian countries’ government and corporatebond market are right now. As you can see, there are two types of countries; one isgovernment and corporate bond market both mutually matured, such as here Singapore
and Malaysia, whereas corporate bond market less matured countries, such as Thailand,
Philippines, and Indonesia. (Indonesia and Philippines might be able to be categorized
as both less matured country since their total bond amounts are not as much as theirGDPs' scale) Anyway, this is start point of my research. Thus, why those private bondmarket less matured countries are like that?
3.

Hypothesis
This thesis hypothesis is Asian Private Bond Market has not been matured

even after the financial crisis due to clear reasons. Why I came up with this hypothesis
is from the Chart1. It shows though some emerging Asian countries developed privatebond market as much as government bond had, there are countries which has not beenable to mature their private bond market. In this research, I will investigate the reasons
why those are behind other Asian private bond market matured countries.
4.

Methodology
Methodology is very flexible, but I will remain it that through proving thereasons that some emerging Asian countries' corporate bond market is not matured yet,
I will use historical context analysis and future prospect verification. Those are mostlydata collection of past analyses and fact base evaluation.
5.

Why Asian Financial Market has not been Matured yet?
First, I check how Asian financial market was being developed and alsosustained. Here I look into the reason that Asian currency exchange market was stablewith USD so that their development was as smooth as no other developing countries did
around the time. Second, I look through AFC itself. I check what kind of support was
taken after that. Then, here I conclude that recent Asian financial weakness in not incurrency market itself and rather it is in Asian bond markets. I look through therepresentative cases of Malaysia and Indonesia. The former developed LCY privatebond market well but the latter could not. With the chart I show that the reason camefrom foreign participants market entry. That was crucial to expand the market like
Malaysia. Finally, I try to convince that foreign participants market entry makes themarket risk decreased rather than conventionally thought to be dangerous or unstable.


Asian Financial Crisis

Pre-crisis momentum
First, how was the condition before the crisis hit Asian region? From early
1990s, Asia was targeted as the next investment region. Money in-flew to emerging
Asian markets. Let me start with the conditions why Asia could receive a lot of
investment from abroad. For instance, for Japan, Asian developing countries are
attractive places where Japan can avoid the turmoil between US by outsourcing
manufacturing process by not directly exporting from Japan. From the perspective of
inner region, those countries are countries which distinguish itself from otherdeveloping countries in following ways conventionally.1 First, those countries had been
having solid educational system which produced many productive labors to the market,
especially manufacturing and other supporting industries. Second, those countries
made industrial policies which attracts outside monetary investment. Lastly, this isrelated to the second, but export promoting economy (or policy) was conducted. Of
course from fundamentalist, other reasons are also suggested, however, here I will try to
focus on financial crisis in the later of this chapter, so let me focus on financially related
things. Above all, as for financial reasons, Asian growing economy's economic success
was also made by internationally stable financial system.
Chart 1. Inflation Rate Comparison
John Page, "The East Asian Miracle: Four Lessons for Development Policy", THE
WORLD BANK

1

(source: "The East Asian Miracle: Four Lessons for Development Policy ")Above chart shows that actually despite all perspective analyses of Asian
countries success before the crisis, what made those successful financially was, indeed,
their solid monetary policy which had managed their domestic economy to be stable foryears. As the chart shows, there is a significant difference between them and otherdeveloping countries. Asian emerging countries, such as from Hong Kong to Thailand in
this chart, had been keeping way less inflation rate; approx. 7.5% on average, whereas
other low and middle income economies had been at high inflation level around thattime; 61.2%. That stable inflation rate made those Asian emerging countries to keep
trading with other countries smoothly and more importantly the accompanying cheap
their currencies compared to abroad ones made them be able to export goods for many
years. Therefore, stable exchange rate was one of the main growth driving engines inthose Asian emerging countries. The implication of this with the fact that is thatmonetary stability also means a lot for development even compared to conventional

growth thoughts from fundamentalist who emphasizes intensive labor force and liberalindustrial policies. With this implication, next paragraph will focus on Asian Financial
Crisis itself. However, this was mostly guaranteed by their dollar-peg exchange rate
system that those Asian countries, for almost a few decades since 1960s, had gotten
around 10% average growth before the crisis. This is the background of before-the-crisis
period.

Asian Financial Crisis Emergence
Asian financial crisis happened when huge Thai baht depreciation occurred
after USD appreciation started due to their dollar-peg system which let them stabilize
their currency value against US dollar at the same level. Till that time, USD had beenstably appreciated. When the depreciation happened by speculative hedge fund shortingher currency, Thai government could not sustain their currency due to lack of theirforeign reserve. That made Thai nearly default. Therefore, Thai government finallydecided to transform to floating exchange rate system to flexibly change their currency
value. As a result, that certainly made Thai baht depreciated a lot. In addition, that
Thai government choice expanded this financial turmoil to their regional countries.
That Thailand financial crisis seemed like one country financial crisis in thatthat currency depreciation was just about herself and not to other countries. However, it
was spread over the region by consecutive speculative fund shorting attacks to thoseemerging market currencies. As the representatives, Indonesia and Korea suffered a lot.
As for the case of Indonesia, they had a surplus of their current account. However,Indonesia was also targeted under the bear market circumstance. In a large picture,
those crises hitting countries problem is the same. They lack their hard currency, USD,
reserve to compensate for those speculative attacks. If they want to keep theirdollar-peg exchange rate system, they have to compensate for currency attack by theirreserved pool. However, they did not have enough foreign reserve at that time.
Therefore, as a result Thai chose to transform to floating exchange rate by abandoning
their dollar pegged exchange rate. Indonesia changed its system to floating exchange
rate too. Korea was forced to break up their Zaibatsu system too.
Insufficient Coping Technique by IMF
Responding this historical financial crisis, IMF declared its help toward those

suffering countries. However, due to those countries small contribution to IMF andAmerica's reluctance to help those suffering countries with enough capital injection,
they had been under suffering for a few years even after the crisis. After this painfullesson, Asian countries, ASEAN+3, gathered and talked about swap agreement which
will inclusively help financially suffering countries effectively.
Asian Countries made Prevention Mechanism
It was Bilateral Swap Agreement (BSA) that was on discussion during

ASEAN+3 conference in November 1999. That is two countries' agreement to swap theircurrency when financial crisis hits them. The amount was 90 billion USD in the year
2009. Later it expanded to 120 billion USD by CMIM (Chiang Mai Initiative
Multi-lateralization).2 Actually, around that time, first Asian countries gathered by the
initiative from Japan to talk about establishment of Asian Monetary Fund (AMF).
However, the talk ended up being failure and it will not come true even in the future
because of China and Japan’s rivalry3 and also, IMF’s intervention to prevent AMF
from being funded due to its motive to remain to be a “world controller”. Then, after
those unfocused conferences and negotiations, ADB reached that coping technique. The
below chart shows how this coping technique works during a crisis.
Chart 2. Bilateral Swap Agreement Created by Chiang Mai Initiative

Ministry of Finance, "Chiang Mai Initiative: CMI";
http://www.mof.go.jp/international_policy/financial_cooperation_in_asia/cmi/index.html
3 William W. Grimes, "The Asian Monetary Fund Reborn? Implications of Chinag Mai
Initiative Multilateralization", Jan 2011, The National Bureau of Asia
2

Asian country, by this, seems to have made an independent coping techniqueon financial turmoil. However, it was controlled by IMF in a sense that IMF de-linked
swap portion is regulated up to 20% though it became 30% later in Chinag Mai
Initiative Multilateralization (CMIM).4
Therefore, I will conclude that under the worst scenario case, capital injection
will be implemented by these agreements to the degree that IMF accepts. If the crisis
was bigger than the extent that CMIM can help, either IMF or world financial giants,
such as US, Japan and China, will make another swap agreement.5 In any case, as forfinancial turmoil, emergency treatment will be conducted by those institutions andcountries.


Shortcoming in Bond Market Exists
However, there is another issue. When the huge depreciation took place, bondmarket (largely short-term USD based lending market) will face difficulty to repay theirloan. For instance, when a currency was depreciated, a corporation/country’s lending
money amount by USD will get relatively higher and the entity gets in trouble to pay
them all back. The reason is they have to procure those abroad currencies to pay back,but they, first, have to exchange their local currency to get those except for the case theentity mostly gets profit from abroad business/activity by complete outside domestic
economy activity. (Currency mismatch6) In addition, those lending money is relatively
short term due to those local entities' low credibility in the bond market. (Maturity
Mismatch7)
Therefore, foreign reserve pooling is not enough to avoid potential crisis. Thosedeveloping Asian countries need the maturity of their local currency bond market.
However, it is hard to develop their local currency bond market. First of all, to lendmoney needs credibility to repay. For those emerging countries, their credibility isrelatively lower than developed countries as global rating companies show. In moredetail, what’s matter is those developing countries’ currency is under volatile risk.
Therefore, lenders are likely to let them borrow money at USD or other more reliablecurrency. However, from those Asian emerging country's own perspective, currency
Do Jong-rok, "ASEAN+3 ministers and central bank governors' meeting successfully
concludes", Ministry of strategy and finance, Press Release
5 Koo, Jahyeong; Kiser, Sherry L.,"Recovery from a financial crisis: the case of South
Korea", (2001) (w). Economic & Financial Review. Retrieved 2009-05-05
6 "Asia Needs Better Developed Bond Markets", June 2013, Asian Century Institute:
http://www.asiancenturyinstitute.com/economy/250-asia-needs-better-developed-bondmarkets
7 Same with 6
4

mismatch cost increases as developed countries' government and corporation keep
lending them money in this way. Therefore, South East Asian countries (SEAs) need topromote their own currencies’ bond market ratio. The practice of that kind of campaign
is being advanced by Asian Development Bank (ADB). ADB took initiatives to develop
local currency bond market expansion step by step. Indeed, here is data that Asian bondmarket after 2001. ABM has been developing at annual speed of 16%.8 (Chart 3)
Chart 3: Growth of the Emerging Asian LCY Bond Market



Historical Context of Local Currency Bond Market
As you see in the Chart 4, private local currency (LCY) ABMs in ASEAN are

relatively far smaller than that of government sector. It was said that regulation took a
big role to prevent private bond market system. Also for foreigners, those private bondmarket were not guaranteed so that they cannot be willing to purchase those bonds asforeign asset allocation strategy either. Therefore, public fostering of private institution
is required. As for the former problem, ASEAN countries are making an effort toderegulate financial sector by many attempts. For instance, Indonesia increased foreign
capital inflow in that they will allow up to 40% of local company's capital holding byforeign institutions in the future.9 Next paragraph examines how ADB is coping with
Iwan J. Azis, Sabyasachi Mitra, Anthony Baluga, and Roselle Dime, ‘‘The Threat ofFinancial Contagion to Emerging Asia’s Local Bond Markets: Spillovers from Global
Crisis’’ Jan 2013 ADB Working Parper Series on Regional Economic Integration
9 It was told that those processes might take many years. Permission of it by law willtake several years and implementation in practice will take another several years.
8the private corporation's local bond while smoothly government sector bond market had
been developed for last decade. (Chart 4) According to Graph 1 it shows that while there
are some countries which show maturity of bond market by comparing market
capitalization, such as Malaysia and Thailand, other countries' data show that theirbond market has not been in reliable capitalization source yet.
Chart 4. Government and Corporate Bonds Outstandings

source: Takeshi Kurihara, Achievements of Asian Bond Markets Initiative (ABMI) in the last decade and Future
Challenges, February 2012

OECD-ADBI 12th Roundtable on Capital Market Reform in Asia

Graph 1. Market capitalization and bonds outstanding (% of GDP)

However, as a fact, for instance many commercial banks in Japan try to purchase
emerging Asian financial institution's asset, such as Ayutthaya Bank in Thailand for
BTMU and BTPN in Indonesia for SMBC.

source: Takeshi Kurihara, Achievements of Asian Bond Markets Initiative (ABMI) in the last decade and Future
Challenges, February 2012

OECD-ADBI 12th Roundtable on Capital Market Reform in Asia

Those above factual things are what we can see right now and they show
immaturity of the market. However, LCY ABM had been developed by ADB a lot. (Asshown in chart 3) First, ABM started being focused and fostered to develop by ADB afterAFC. After some negotiations, it was August 2003 that government level high officer
meeting that created Asian Bond Market Initiative (ABMI) was finally held in Manila
the Philippines. ABMI was aimed at mobilizing liquidity of LCY bond market bytransforming from long-term-existed Asian short term USD-based loan market
domination. In that sense it was targeted to solve the "double mismatches"; currency
mismatch & maturity mismatch, in finance sector in Asia emerging market. The
background why we can foster this development of ABM is huge saving rate in Asia dueto this developing economy and coming aging society.10 Till recently, Asian high saving
account was indirectly out-flown to European bond market due to its relatively higher"credibility" and Asian local bond’s high "volatile". Here, obvious thing was LCY ABM
was not matured to make investors trust due to above reasons.
Highly Guaranteed LCY Bond Issuance System is Being Structured
ADB established an institution called "Credit Guarantee and Investment

Facility (CGIF)". The CGIF was established in November 2010 with the initial capital of
It was theorized by life cycle theory that high saving rate will happen in an
economically emerging country and that will continue till matured aging society comes10

700 million USD. Due to conservative investment policy of institutional investors in theregion, even good companies with investment grade rating by local credit agencies, hadbeen facing difficulties in getting finance by bond market. However, establishment of
the CGIF will foster private domestic currency bond market by giving guarantees forinvestors for the investment. This is commercially sustainable system. It is not grantsystem, so CGIF contributing countries, such as Japan and China, can get profit bylending.
Chart 5. The Structure of Credit Guarantee and Investment Facility (CGIF)(source: Takeshi Kurihara, “Achievements of Asian Bond Markets Initiative (ABMI) in the last decade and Future
Challenges, OECD-ADBI 12th Roundtable on Capital Market Reform in Asia”, February 2012, Ministry of Finance)

Up to here, I conducted historical events analysis of ABM by looking through
ABMI and newly ADB institution; CGIF which fosters further development in least
developed financial sector; corporate bond market.
Next I will focus on the reasons why Asian bond market developed for last
decade at this fast pace. The reason why I researched about this sector was I was notreally convinced by the conditions that inter-government level conference and that
implementation would have made every progress. The below is categorized largely byeconomic and political reasons. They will explain more inclusively about ABM
development.


Asian Bond Market Maturity Conditions

1.

Political Perspectives

Regional International Organizations



ADB is taking initiative to mature local currency bond market(IMF is, in opposite, reluctant to take any initiative regarding regional bondmarket evolution though IMF chairman, once, mentioned regional development offinancial market is good).

Each government Level Motive-Components why it does not work any
moreFailure of Good Management of Monetary Policy11

In floating exchange system, monetary policy is just effective for appreciation of
local currency time by lowering interest rate policy.



Depreciation time, to prevent it from furthering, central government needs toincrease interest rate, but it cannot be implemented with consecutive domestic
market demand decrease.

However, they cannot take a measure to foster their domestic market consumption,
like inflation targeting because if they ease money, their loan “real” payment
amount will go up due to depreciation of their currency.

Therefore, each small state (In macroeconomics definition) cannot help but shift tolocal currency bond market to hedge the currency risk to happen

2.

Economic Perspectives

Supply Side Analyses
Global Trend

After global financial crisis, world prefers bond market more for a long term rather
than equity and other high risk assets in secondary market.12High dependency domestic commercial banks
High Dependency on Domestic Commercial Banks & its Future ExpansionAlso, SEAs’ society will have been accumulating high saving rate due topreparation of House Hold for its coming aging society.13

Morris Goldstein and Philip Turner, “Controlling Currency Mismatches in Emerging
Markets”, Chapter 2 “Why Currency Mistaches Matter”, P.18
12 Alex Sienaert, "Foreign investment in local currency bonds-Considerations for
emerging market public debt managers", Dec 2012, The World Bank Policy ResearchWorking Paper, P. 2
13 "Asia Needs Better Developed Bond Markets", June 2013, Asian Century Institute:11Compared to Latin America, Southeast Asian countries (SEAs) reply on local
commercial banks loan. That means they need better potential in lending by theirown currency and also it is more feasible than Latin America in that they canestablish their domestic borrowing market system by high domestic saving rate
more than Latin America which procure money from directly foreign volatile
market including US14

Demand Side Analyses



Borrowers prefer their own currency to avoid currency mismatch (Graph2)
As the graph shows, countries in Asian region increased the dependence on
external "short term" debt till especially before AFC. That caused the mismatches
not to be able to pay back the debt.



Borrower, whether public or private in SEAs, they prefer lower risk and interest
rate lending compared to short term (maturity mismatch) & higher interest rate
local commercial bank loan deals.

Graph2. Currency Mismatches

For those above reasons, LCY bond market development was cooperatively
conducted. Of course there are a few counter parts. First, US will get less benefit bythem. Thus, if local currency bond market increases, US currency mobility decreases,
http://www.asiancenturyinstitute.com/economy/250-asia-needs-better-developed-bondmarkets
14 Morris Goldstein and Philip Turner, “Controlling Currency Mismatches in Emerging
Markets”, Chapter 2 “Why Currency Mistaches Matter”, P.11-19

then that means their currency hegemony power will decline. In more economics’ sense,
it means US has to exchange her own currency to give aid to those countries. However,since the power balance change to more local currency bond market from that of USD atsome point makes a shift to lower interest rate in local currency and also SEAs local
entities decide to borrow more money in local secondary market (Demand shift to local
currency market), therefore, US cannot deny ABM local currency expansion once it
conducted deeply. Here real problem about ABM was not those political rivalry/friction
but financial market own problem. Thus, ABM has a problem not to be able to expand
its market smoothly.15 ABM is feeling hard to manage both procurement of more money
and market volatile risk management. If they think about inclusion of foreign
participation (FP), every last question they face to consider is whether they are justspeculator or true business partner. It is from the experience Asian countries faced inAFC. Asian nations suffered a lot by the last regional crisis. For them, FP will still be
speculator who, in a case, suddenly, change their decision and make Asian countries indanger. However, there is a recommendation which rather promote that ABM should
expand with foreign investors.
Lingering Shortcomings on Bond Market

A.

Lack of Domestic Participation
Last paragraph I insisted that although local currency bond market has been

improving and expanding its absolute amount, it is still far behind to attract foreign
investors’ participation to complete its expansion engine. (Remind Graph 1; ABM is stillon the long way to expand fully and here the assumption is due to foreign market
entrance) As the chart 6 & 7 show, for instance, relatively immature bond market(Indonesia) is consisted of more FP compared to relatively matured LCY bond market
country (Malaysia).
Chart 6: Malaysian LCY bond market lenders(Office of Regional Economic Integration Asian Development Bank, (2009) ‘‘AMBI Directory of institution investors
in the ASEAN+3 bond markets ’’ P. 34-37)

As I cited in citation no. 9, Asian bond market need foreign money inflow more inmany sector to expand their market.

15

Chart 7: Indonesian LCY bond market lenders(Office of Regional Economic Integration Asian Development Bank, (2009) ‘‘AMBI Directory of institution investors
in the ASEAN+3 bond markets ’’ P. 54-57)

Why those two has difference between their bond markets' participants? The
scenario is that if the aging society benefit to local bond market increased due to more
job market entry than job market exit (retirement), therefore the society will increase
its secondary market capitalization due to more savings.16 (Life Cycle Model Theory)
Now, Southeast Asian countries are on this stage, thus every country has more market
entry than out. As we can see here, Malaysia has far more social security institutions
participation than that of Indonesia (categorized as "Pension funds" there). In
conclusion here with the Chart 4, Malaysia has more saving money than Indonesia andthat makes the difference we can see in Chart 4. In next chapter, I discuss acontradicted result of what we have examined here.
B.

Empirical Research for ABM Expansion

Takatoshi Ito, The University of Tokyo GraSPP, “Japanese Economy”, 2013 Springsemester

16

There are some empirical research results. One of them is Peiris' research. His
research shows that when 1% foreign participants commitment is added to local
currency bond market, actually 6bps bond yield declines.17 That is the empiricalexperiment result. With this important proof, other proofs and Implications why foreign
market participation will increase are follows. First, local currency mobility has
limitation and LBM divests, so foreign investors are needed to inject capital to themarket. (Market Size Expansion). Second, foreign investors need more transparent
information disclosure. Therefore, corporation in the market will become more reliable
to account themselves internationally to further investment. Behind the second reason,
finally, that is transacted by the fact that government tried to make safety net to try to
mitigate investors risk by regulation and guarantee, such as pay off. Therefore, foreign
participants’ involvement should be more encouraged in the future.
Equation 1.

Extracted variable introduction;
Lr=Nominal Yield, i=country "i", t=period "t", FP=Foreign Participation
Also, next one is explanation of foreign participation effect on volatility.
It shows that foreign volatility does not go up due to foreign participation. Rather, what
it showed is good relationship from foreign participation to volatile decrease. Therefore,
foreign participation to LCB market is necessity both to develop the country more andalso to stabilize the bond market more. Of course, I think I should consider qualitative
standard which will also decide those foreign participants market entrance. As for that,
ABMs’ regulative improvement will be strongly required. However, here, I want toconclude that foreign capital injection in ABMs is very crucial as these equations show.
Equation2&3

Shanaka J. Peiris, "Foreign Participants in Emerging Markets' Local Currency Bond
Markets", Apr 2010, IMF Working Paper

17Extracted variable explanation; Lr=Nominal Long Term Local Currency Bond
Yeirld, σ2=a measure of its volatility, FP=Foreign Participation
Graph3

Whether less Volatility or more Market Expansion?
As the research shows, ABM should receive more foreign participation in its

bond market with the empirical research. However, in reality, it does not necessarily
guarantee the increment of bond market capitalization. (Chart 4)
6.

Conclusion
First in order to clarify the background of current financial circumstances inAsia, I investigated Asian Financial Crisis and figured out reasons why Asian Financial
Crisis happened. Later, I divided the reasons into two parts, namely lack of enoughforeign reserve and bond market immaturity. The former one was coped with IMF, ADB
or giant country mainly. Yet until now, Asian bond market has been still immature insome countries. I tried to specify the problem reason underlying ABMs right now. I did
reasoning and also empirical research application. The former result shows that Asianbond market has a characteristic that social security maturity makes more
capitalization. However, in the empirical research, it suggested that ABMs, as the next
step, need foreign capital injection”. Here my research significant point is though theempirical foreign participation analyses are from existing papers, however, I
compensate for the lack of the empirical research. There are two different reasons about
more market capitalization of the bond markets and less volatility. Although it seems
like it is possible to solve high volatility problem in emerging Asian bond market,
however it does not necessarily guarantee more capitalization of the bond market. (It isvery important to capitalize the bond market more to develop the market further!) As
the next research step, I would like to research more specifically so as for this research
paper to be able to be more reasonable. For instance, the empirical research includes all
emerging Asian countries data so that I could not specify it is the reason why some
Asian bond market countries are less matured.

References

Masahiro KAWAI; ''From the Chiang Mai Initiative to an Asian Monetary Fund''(2010)



John Page, "The East Asian Miracle: Four Lessons for Development Policy", The
World BankMinistry of Finance, "Chiang Mai Initiative: CMI";
http://www.mof.go.jp/international_policy/financial_cooperation_in_asia/cmi/index.
html

Koo, Jahyeong; Kiser, Sherry L.,"Recovery from a financial crisis: the case of South
Korea", (2001) (w). Economic & Financial Review. Retrieved 2009-05-05



Do Jong-rok, "ASEAN+3 ministers and central bank governors' meeting
successfully concludes", Ministry of strategy and finance, Press Release

William W. Grimes, “The Asian Monetary Fund Reborn? Implications of Chiang
Mai Initiative Multilateralization”, Jan 2011, The National Bureau of Asian
ResearchJeffrey D. Sachs and Wing Thye Woo, ''A Reform Agenda for a Resilient Asia'',(2000) in a book ''The Asian Financial Crisis Lessons For a Resilient Asia'', editedby Wing Thyre Woo, Jeffrey D. Sachs and Klaus SchwabIwan J. Azis, Sabyasachi Mitra, Anthony Baluga, and Roselle Dime, (Jan 2013)‘‘The Threat of Financial Contagion to Emerging Asia’s Local Bond Markets:
Spillovers from Global Crisis’’, ADB Working Parper Series on Regional Economic
Integration



Takeshi Kurihara, (February 2012) “Achievements of Asian Bond Markets
Initiative (ABMI) in the last decade and Future Challenges, OECD-ADBI 12th
Roundtable on Capital Market Reform in Asia”

"Asia Needs Better Developed Bond Markets", June 2013, Asian Century Institute:
http://www.asiancenturyinstitute.com/economy/250-asia-needs-better-developed-bo
nd-markets

Office of Regional Economic Integration Asian Development Bank, (2009) ‘‘ABMI
Directory of institution investors in the ASEAN+3 bond markets ’’ P. 34-37, 54-57

Shanaka J. Peiris, "Foreign Participants in Emerging Markets' Local Currency
Bond Markets", Apr 2010, IMF Working Paper