15 April 2014

IOSCO research publishes paper on corporate bond markets

The main findings of the report can be summarised in the following key messages:

1. Corporate bond markets are growing in terms of size and importance to the real economy, and are extending their global nature.
    
2. Since the onset of the crisis, corporate bond markets are beginning to fill a gap left by bank and long-term/infrastructure financing, and are showing potential for servicing small medium enterprises (SMEs).
    
3. These trends are in part fuelled by a search for yield. A changing interest rate environment may modify bond risks and raise new investor protection issues, especially from a retail investor perspective.
    
4. Meanwhile, secondary markets are evolving to accommodate a new economic and regulatory environment. Understanding this change is key to identifying both potential systemic risks and opportunities to develop these markets.

This staff working paper is the first in a three volume series. As Volume I, it provides a view of how global corporate bond markets have changed, comparing developed and emerging markets. Volume II (emerging markets) and Volume III (developed markets) will provide more granular country-by-country data and analysis, in recognition of the diversity within the different regions.

Press release

Full Working Paper

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