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Developing India's Offshore Local Currency Bond Market: Lessons from Emerging Countries

Author

Listed:
  • Renu Kohli
  • Pravakar Sahoo
  • M. Shuheb Khan

Abstract

This paper takes stock. It assesses the current market state and structure, surveys a cross-section of market participants to identify the relevant issues, and employs two case studies of EME peers, China and Brazil, to learn from their respective paths and experiences in similar regard. The paper concludes by listing the key essentials for future growth and long-term sustainability of the masala bond market and its emergence as a viable avenue for infrastructure financing.

Suggested Citation

  • Renu Kohli & Pravakar Sahoo & M. Shuheb Khan, 2017. "Developing India's Offshore Local Currency Bond Market: Lessons from Emerging Countries," Working Papers id:12039, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:12039
    Note: Institutional Papers
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    References listed on IDEAS

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    2. Robert McCauley & Guorong Jiang, 2004. "Diversifying with Asian local currency bonds," BIS Quarterly Review, Bank for International Settlements, September.
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    6. Miyajima, Ken & Mohanty, M.S. & Chan, Tracy, 2015. "Emerging market local currency bonds: Diversification and stability," Emerging Markets Review, Elsevier, vol. 22(C), pages 126-139.
    7. Dong He & Robert N. McCauley, 2010. "Offshore Markets for the Domestic Currency: Monetary and Financial Stability Issues," Working Papers 1002, Hong Kong Monetary Authority.
    8. John D. Burger & Francis E. Warnock, 2006. "Local Currency Bond Markets," IMF Staff Papers, Palgrave Macmillan, vol. 53(si), pages 1-7.
    9. Hausmann Ricardo & Panizza Ugo, 2011. "Redemption or Abstinence? Original Sin, Currency Mismatches and Counter Cyclical Policies in the New Millennium," Journal of Globalization and Development, De Gruyter, vol. 2(1), pages 1-35, August.
    10. Burger, John D. & Warnock, Francis E., 2007. "Foreign participation in local currency bond markets," Review of Financial Economics, Elsevier, vol. 16(3), pages 291-304.
    11. Hung-Gay Fung & Jot Yau, 2012. "Chinese Offshore RMB Currency and Bond Markets: The Role of Hong Kong," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 20(3), pages 107-122, May.
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    15. Feyen,Erik H.B. & Ghosh,Swati R. & Kibuuka,Katie & Farazi,Subika, 2015. "Global liquidity and external bond issuance in emerging markets and developing economies," Policy Research Working Paper Series 7363, The World Bank.
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    17. Fernandes, Marcelo & Nunes, Ricardo, 2014. "Brazilian Corporate Debt Issuance: Should You Invest in Local or International Bonds?," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 34(2), November.
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    Cited by:

    1. Hari Venkatesh & Gourishankar S. Hiremath, 2021. "The resurgence of currency mismatches: Emerging market economies are not out of the woods yet?," International Economics and Economic Policy, Springer, vol. 18(4), pages 721-742, October.

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