Panel 2
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PANEL 2 THE DEVELOPMENT OF LOCAL DEBT MARKETS – CHALLENGES AND INTERVENTIONS REQUIRED |
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| PANELISTS | |||||||||||||
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| MODERATOR | |||||||||||||
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Rob Barrow |
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| DESCRIPTION | |||||||||||||
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Debt markets are important sources of funds for both developing and developed economies and play a particularly vital role in providing long-term funding to key sectors of the economy, including infrastructure, housing finance, etc. The presence of an active and efficient debt market, will give corporations an alternative means of raising debt capital to banks. Debt markets also help corporations reduce their financing costs and it offer savers opportunities to invest in a wider range of assets. They improve financial stability by reducing the credit risks concentrated in and borne by the banking sector. Transparency in the development of the debt market, liquidity, market infrastructure, investor education and efficient payment and settlement systems are vital for ensuring the success of these markets. |
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| TOPICS | |||||||||||||
| Spot debt markets are largely over the counter while there are significant exchange traded interest rate derivative markets. Is this likely to continue or do regulators need to look more carefully at how to increase the transparency, liquidity and pricing in the secondary debt markets? Is it desirable for spot debt markets to move to central order book trading? What policies should be put in place and what are the critical areas for the further development of the debt market? Is the corporate bond market developing at an acceptable pace? What are the changes we can expect to see going forward? What makes a domestic debt market attractive to a foreign and domestic investor? What role should the rating agencies play in the debt market? Should the debt securities/instruments be traded on exchange or not? | |||||||||||||
