It is a crisis like no other. Yet, Asia’s bond markets have held up during this pandemic. Not only that. In a period of volatility and uncertainty unseen in more than a century, economies in this region are enjoying the fruits of the work of the past two decades of strengthening the foundation of its capital markets.
Amidst the COVID-19 pandemic, Asia’s bond markets continue to rebound and expand on the back of record low interest rates and healthier government and corporate balance sheets. Accompanying the rise of the capital markets is the broadening of the domestic investor base. Indeed, as the Covid-19 spread far and wide, governments in this region tapped successfully Asia’s markets in order to raise finance for relief measures. Similarly, corporate issuers were able to access the market for refinancing notwithstanding the bouts of volatility. In many ways, Asia’s bond markets have come of age.
As the region rebuilds its economies, Asia’s bond markets will continue to play a major role especially in financing a sustainable and inclusive recovery. Green, social and sustainability bonds are the region’s fastest growing and now playing a bigger role in mobilizing capital for the post-pandemic era. Meanwhile, the COVID-19 pandemic remains the biggest risk to Asia’s bond markets. Moreover, the chatter on the US Federal Reserve and its intention to raise interest rates earlier than expected could impact liquidity and the cost of financing.
The Asset Events+ is pleased to be hosting the 16th Asia Bond Markets Summit on the theme, Coming of age. The annual gathering of thought leaders and industry participants will discuss how issuers and investors are navigating the current market and examine how the post-pandemic era will reshape finance.