Weathering Financial Crisis: Domestic Bond Markets in EMEs

20 Pages Posted: 15 Feb 2012 Last revised: 5 Oct 2013

See all articles by Philip Turner

Philip Turner

Bank for International Settlements (BIS) - Monetary and Economic Department

Date Written: January 1, 2012

Abstract

Currency mismatches in the major EMEs have been much reduced over the past decade. The development of deeper domestic bond markets has contributed greatly to this. Stresses in international markets after the failure of Lehman severely tested these new markets. There was a flight of foreign investors largely because of the limited international “collateral capacity” of this new asset class. But those markets with a substantial domestic investor base withstood this intense pressure well. The wider development of exchange-traded interest rate derivative contracts in EME currencies would be helpful.

Full publication: Weathering Financial Crises: Bond Markets in Asia and the Pacific

Keywords: Bond markets, currency mismatches, macroeconomic liquidity

JEL Classification: E43, E44, E58, G12

Suggested Citation

Turner, Philip, Weathering Financial Crisis: Domestic Bond Markets in EMEs (January 1, 2012). BIS Paper No. 63e. Available at SSRN: https://ssrn.com/abstract=2005841

Philip Turner (Contact Author)

Bank for International Settlements (BIS) - Monetary and Economic Department ( email )

Centralbahnplatz 2
CH-4002 Basel
Switzerland

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