Challenges ahead for Asia-Pacific bond markets: S

Singapore, Aug 30 (UNI) Developing bond markets in the Asia-Pacific region will have to confront several policy challenges if the region is to be recognised as one of the three major world bond markets, said the Standard&Poor's in a report.

The report-- Pushing Asia-Pacific's Developing Bond Markets Onto The World Stage-- discusses key issues confronting the less-developed bond markets in the Asia-Pacific like that of China, Korea, Taiwan, Malaysia, Thailand, Indonesia and India, while examining a range of bond markets of the region.

''Asia-Pacific's developing bond markets need to address the policies that have led to the development of two distinct markets --a local currency market and an offshore market that is denominated in the US dollars and euros and is the province of only the largest players,'' said Mr Phil Bayley, Director capital markets at the Hong Kong-based agency.

Attracting international issuers and investors will enable local currency markets to develop greater depth and efficiency, allowing borrowers to reduce their reliance on the offshore market or domestic banking systems for debt funding.

It will also facilitate greater integration of the region's markets, he added.

UNI XC PKS KN1344