PH one of East Asia’s fastest-growing bond Markets
by FFE PH News staff
The ADB’s Asia Bond Monitor report released on Monday said ‘On an annual basis, the fastest-growing markets were Vietnam [18.8%]; Indonesia [16.3%]; People’s Republic of China [14.4%]; the Philippines [12.5%] and the Republic of Korea [10.4%].
On a quarterly basis, the Philippines grew by 3.6% in the third quarter (Q3) of this year, second in the East Asia region. In the same period, Indonesia grew by 3.9%, China by 3%, South Korea by 1.8% and Malaysia by 1.8%.
By the end of Q3, the Philippines’ local currency market grew to $98 billion. The increase was credited mainly to the government bond market, which saw a year-on-year growth of 13.6%, reaching $86 billion.
ADB also registered a 5.8% growth in the corporate bond market mainly due to the bonds issued by Ayala Land Inc. and Globe Telecom.
For Q3 as a whole, East Asia registered a 2.1% growth in government bond markets, up from the 1.1% growth registered from April to June. The government bond market remains as the key driver in the region. Meanwhile, limited investor diversity is seen as the reason the region’s bond market isn’t growing as rapidly as possible.