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Country reportsFebruary 16 2011

Asian local-currency bonds move centre stage

Asia's bond markets are the largest outside the US and Europe. National markets vary enormously but most are growing rapidly, driven by huge pools of onshore liquidity and by the desire of Asian companies to plan and fund long-term. And local banks are taking an ever bigger slice of the business.
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Asian local-currency bonds move centre stageFlorian Schmidt, managing director and head of debt capital markets, for Asia, ING Bank

Every orchestra has a second fiddle and in Asian capital markets that role has traditionally been taken by the bond markets, modestly keeping time behind their more illustrious equity counterparts.

If the first violin has thrived, however, the second fiddle has also become an outstanding performer in its own right, and as the Asian economic engine powers forward, the bond market is required to play a leading role.

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