ICMA Podcast
Shaping the future of Asian fixed income markets
Following the release of the 3rd Asian International Bond Markets report by the International Capital Market Association (ICMA), for which MarketAxess contributed valuable TraX data, Riad Chowdhury, Head of APAC, joined Mushtaq Kapasi from ICMA in a conversation on the evolution of Asian fixed income markets.
Key insights include:
Policy divergence and interest variations: While Western central banks have been raising rates, Asia's largest economies have eased, fostering different investment interests across the globe.
Diverse investor base and preferences: Japanese, Taiwanese, and Korean investors often lean towards lower-yielding, higher-grade assets, while Southeast Asian investors, conversely, tend to favor higher-yielding, somewhat riskier assets.
Significance of indices and fund flows: Indices are a significant part of activities in Asia today due to how they are used for both active and passive investment strategies.
Increasing e-trading adoption in Asia: Despite the absence of a regulatory mandate, the adoption of e-trading in Asia has been accelerating driven by both operational advantages and the global push towards greater transparency.