Accelerating Emerging Capital Markets Development: Corporate Bond Markets is the inaugural report from the World Economic Forum’s initiative on accelerating capital markets development in emerging economies. In today’s environment, bond markets, particularly for local currency debt, are more crucial than ever before. Post-crisis financial reforms have limited banks’ willingness and ability to lend. The threat of monetary policy tightening in developed countries has created concerns that foreign capital flows into emerging countries will reverse, creating a funding gap that existing domestic capital pools cannot fill.Stable access to long-term capital from diversified sources is important to sustaining real economic growth and financial system stability. Well-functioning corporate bond markets efficiently mobilize savings to fuel private sector growth and finance valuable projects, diversify credit and funding risk from the banking system, and facilitate the maturity transformation of domestic short-term savings to long-term investments. This report offers a practical set of recommendations – developed with the support of local and global market participants, regulators, economists, and academics – for policy-makers to consider as they navigate the corporate bond market development process.
This report was prepared in collaboration with Oliver Wyman.