Asset Securitization Program To Develop The Asian Bond Market

The Asian region has the highest saving rate across the world and keeps thousands of billions dollars foreign currency reservation. But most of its capital is invested in the U.S and European financial market because of its lack of a developed bond market. This region's economic development, however, highly relies on foreign investment, especially the short-term capital inflow. Under the context of economic globalization, regional financial cooperation plays a very important role in stabilizing the region's financial system and continuous economic development. The development of Asian regional bond market will be of great help to change the region's high dollarization situation and its dependence on the economies out of this region, and provide an emergency capital and keep its financial market stable if some financial crisis emerges. This paper, after analyzing the main investing risks in the Asian bond market, worked out a securitization plan to avoid these risks and support its development.