Under the combined pressure of increased urbanization, fiscal adjustments and decentralization, central governments were pushed towards accepting the idea of local government accessing the private finance sources for their public infrastructure and service development investments. While the...

Despite the substantial increase in green bond issuance over the past decade, corporate green bonds still only represent a small fraction of total bond issuance, and evidence on the drivers and costs of corporate green bond issuance is lacking. Drawing from the distinct features of green bonds...

Bonds are widely accepted and used as collateral assets for their inherent stability of value. Based on a review of scenarios where bonds are used as collateral, this paper discusses the impact of using bonds as collateral on the bond market by a combination of theory and practice. The author...

The domestic bond markets of the Asia and Pacific region have grown considerably since the Asian financial crisis of 1997, although they remain undeveloped relative to the region's weight in the world economy. This paper proposes that in order to encourage further development of these markets,...

Utilizing subsets of trades in which dealers act purely as agents, purely as market-makers, and as both, we decompose dealer spreads in U.S. corporate bond OTC markets into components arising from: 1) dealers' marketmaking role, and 2) their role as agents for their non-dealer customers. We find...

This paper is intended to serve as a reference guide on U.S. repo and securities lending markets. It begins by presenting the institutional structure, and then describes the market landscape, the role of the participants, and other characteristics, including how repo and securities lending...

Since the financial crisis and, even more, since the recent sovereign debt crisis, the role of credit default swap (CDS) has been subject to growing attention by policy makers and regulators, because of fears that transactions of a speculative nature on the CDS market may amplify tensions on the...

We develop a two-country international asset pricing model in which investors are heterogeneous. Exchange rate dynamics give rise to a currency risk premium, uncovered interest parity is violated. Countries whose output growth is expected to be sufficient to satisfy growth in demand have high...

Credit risk has many facets - such as spread risk, default (jump) risk, migrational risk and correlation risk - that are modeled separately under the current Basel framework. We propose a risk metric called credit Bubble VaR (Cr. buVaR) that combines these risks under a common historical...

This paper reassesses the results of Japan‘s financial deregulation over the last two decades. Japan‘s Big Bang sought to transform a highly regulated bank-centered financial system to a transparent, market-centered financial system to revitalize Japan‘s economy and aging society. Prior...