Markets are adapting to this new environment. Where there is an unmet demand for liquidity, new market makers are emerging to meet that demand. For example, some PTFs are seeking entry to dealer-to-customer platforms for Treasury trading.
In the demand side, Asia requires huge investment in infrastructure projects to attain and sustain high economic growth. Such infrastructure projects suffer from both equity and debt financing challenges. Equity financing is linked to risk taking by the savers who want to invest while debt financing related to the limitations of banks and financial institutions to invest for long term.