This website uses cookies to ensure you have the best experience. Learn more

An Analysis Of The Emerging Bond Market

1841 words - 7 pages

Before the 90's, only credit worthy issuers considered to be reliable were allowed to issue bonds in the international market. A national government that was unable to obtain investment status rating on its' national debt was restricted to borrowing required funds from banks or domestic credit markets. This restriction not only affected national governments, it also affected companies that resided in countries these governments ruled.According to Levinson (2000, p. 88):"Companies in these countries were excluded from the international debt markets as well because, with few exceptions, the ratings agencies impose a sovereign ceiling, meaning that no borrower in a country can be rated as high as a national government. If the sovereign debt of the national government was deemed to be poor credit risk, the country's corporate debt was automatically treated the same way".In recent years (particularly between 1994 and 1997), the emerging bond market has witnessed unprecedented growth rate. According to Reports from the International Monetary Fund, between 1995 and 2005 the amount outstanding doubled in size every five years, from about $1 trillion in 1995 to $4.5 trillion in 2005.Initial observations about emerging market bonds suggest that the benefits of possessing the bonds outweigh the risk (Nemerever, 1996). However, successive research with reference to the Russian 1998 bond default and the East Asian economic crises of 1997 has shown that despite the considerable amount of public attention received by the emerging bond market, it still comes with its ups and downs.Despite cautionary warning from market analysts about the reliability of the emerging bond market, The market has proved to be quite popular with a substantial amount of institutional investors across the globe. For example, J.P. Morgan's global emerging markets Bond Index rose to 248% from 1994 to May 2004 as opposed to 195% for its U.S. corporate junk and investment-grade bonds and an increase for the 103% for its S&P 500. Such performance has added more credible evidence that emerging bond markets can be used as a safe haven for investors in the long term.This study will take a critical look at the emerging bond market and analyse how it has fared in the past ten years. First, I take a historical look into the emerging bond market, stating its highs and lows and also mention the market players (countries and regions) and their share of the market.Secondly, this report uses a compiled data of 50 surviving funds from 1996 to 2005 on the U.S based emerging bond markets as a benchmark to see how the market has fared. Measuring the performance of emerging debt market is considered unreliable and tricky because return characteristics vary according to market conditions (Goetzman and Jorion, 1999), but saying this, the sample period used in this study is important because it covers a complete cycle of the emerging bond markets. The cycle moves from the peak of capital inflow to...

Find Another Essay On AN ANALYSIS OF THE EMERGING BOND MARKET

Bonds and the Bond Market Essay

3860 words - 15 pages form of a bond until maturity, while others give the bearer an the option of whether or not he or she would like to 'trade' the bonds in for common stock.Canada Savings Bonds are labeled as 'government bonds', however, in comparison to regular bonds, their characteristics differ. One advantage of Canada Savings Bonds is that, unlike most bonds on the market, their prices do not fluctuate with interest rates or credibility ratings. Another advantage

Bonds and The Bond Market Essay

2640 words - 11 pages of bonds available on the market. Each individual, when considering bonds, must decide which of type of bond is best suited to him or her. Some bonds provide a stable income from interest earned and must be kept in the form of a bond until maturity, while others give the bearer an option of whether or not he or she would like to 'trade' the bonds in for common stock.Canada Savings Bonds are labeled as "government bonds", however, in comparison to

Bonds and The Bond Market

5981 words - 24 pages Bonds and The Bond Market Given today's uncertain economy, many people are taking time to examine various options for their financial future. Different types of investments are investigated and bonds are one of the more popular choices considered. Many of the same people who talk about investing in bonds, however, do not fully understand them nor where they place in the economy. Many

COMPARING THE PERSISTENCY OF DIFFERENT FREQUENCIES OF STOCK RETURNS VOLATILITY IN AN EMERGING MARKET: A CASE STUDY OF PAKISTAN

2718 words - 11 pages study has the following objective: “to compare the variance structure of high (daily) and low (weekly, monthly) frequencies of data”. This study extends the work on volatility of the emerging financial markets. ARCH/GARCH models are employed in this study to compare the volatility behavior of the different frequencies of data (daily, weekly and monthly). The heteroscedasticity is major characteristics of developing market so need for the

Analysis of Wearable Augmented Reality as an Emerging Technlogy

3751 words - 16 pages advertisers if the user looks at an ad. The device tracks the user’s eye movements and knows what the user is looking at. Similarly, QR codes on ads will gain more relevance with such devices. Currently only 6.2% of all US mobile users have ever snapped a QR code with their phone. The remaining 93.8% has never utilized QR codes, which is a huge market to tap into. The problem with QR codes is that “the effort required [to use them] outweighs the

Analysis of the Opening Sequences of Three James Bond Films

3432 words - 14 pages Analysis of the Opening Sequences of Three James Bond Films Analyse the opening sequences of three James Bond films and explain why they are constructed in this way. James Bond has been running for forty years and has released twenty movies. My essay will analyse the following three James Bond movies: · Dr No (Starring Sean Connery, first Bond movie made) · A view to kill (Roger Moore) · Golden Eye (Pierce

The Bond of Communion:

1621 words - 7 pages The Bond of Communion: An Analysis of the Communal bonds throughout Dante Alighieri’s The Inferno Human beings are odd creatures, possessing abilities no other living species have. These abilities being Intelligence, Reason, and Free Will. These attributes allow human beings to value and destroy whatever they deem necessary to them. One of the most valuable things to a human being is the communal bond. This bond comes in many shapes and forms

An Analysis of How the Housing Market Affects Impoverished Neighborhoods

1604 words - 7 pages lead to further degradation to the city of Oakland and migration out of Oakland. Among many others, these factors within the housing market are important in our analysis of why impoverished communities remain poor, because the residents have little to no upward economic mobility to sustain themselves. II. Data and Methods The U.S. Census Bureau and American Community Survey (ACS) act as the primary datasets for this report. The U.S. Census Bureau

An Analysis of Blackberry Phones in the Market

1199 words - 5 pages engulfed in a competitive market could be an overwhelming and challenging experienced for any company. The compatibility of Blackberry did not match the standards of other competitive operating systems. Even the acquisition of QNX could not help Blackberry tap in the lucrative market to stay afloat.

An Analysis of Competitive Processes Within The Games Console Market

1927 words - 8 pages offering products appealing to different segments of the gaming market. Photos of the consoles can be found in Appendix A. The firms/consoles are :* 牋牋牋牋Sony (Playstation 2)* 牋牋牋牋Nintendo (Gamecube)* 牋牋牋牋Microsoft (Xbox)* 牋牋牋牋Sega (Dreamcast) (now defunct)Competition AnalysisThe industry conforms to an oligopolistic model of competition

Accounting in an Emerging Country - The Case of Bangladesh

8276 words - 33 pages Accounting in an Emerging Country: The Case of Bangladesh 213 MD. Tashrif Ul Amin ID: 2009-2-10-333 East West University 2 | P a g e Letter of Transmittal September 09, 2013 To Prof. Dr. Monirul Alam Hossain Department of Business Administration East West University, Dhaka Subject: Submission of the Project Report. Dear Sir, This is the exceptionally overwhelming experience of submitting the project report which I have prepared with my hard

Similar Essays

The Necessities Of An Emerging Market And Economic Environment

870 words - 3 pages The main purpose of this correspondence is to acquaint you with some ideas which when implemented will help to achieve optimum transformation of the nation’s domestic market. It is my belief that in order to achieve an effective transition into the emerging markets, these rules should be implemented. Firstly, there is a need for to minimize costs and maximize benefits, which will be realized through market capitalization. Secondly, industries

An Analysis Of Emerging Adults

1340 words - 6 pages internet work against this young age group in maturing these four domains. The trends, pressures, and stereotypes set my popular culture warp the development of emerging adults in a negative direction. The society we live in today is addicted to the false sense of realism set by popular culture. From movies to magazines emerging adults are fed an unhealthy expectation of what they should look like physically and are contrastingly given a plethora of

Whatís An Emerging Market Economy? Essay

1085 words - 5 pages By definition an emerging market economy is one that has a low to middle per capita income which is in the process of moving from a closed economy to an open market economy. They currently represent approximately 20% of global economies. Although China is considered to be one of the largest economies of the world it is still classified as an emerging market due to its developments and reforms and low capita income per head. In general, emerging

The Bond Market In China Essay

2872 words - 12 pages rising at about 30 per cent a year (Financial Times, 2014). The bond market of China is developing in a more market-oriented structure, rather than towards an administrative structure. Nonetheless, investors still have to face barriers to access China’s strong expansion through the bond market, such as the number of restrictions regarding who and how can invest, a lack of knowledge concerning the kinds of bonds existing, and other aspects of the