Development of government and corporate debt market may be approached within a framework of seven key components, viz., Issuers, Investors, Intermediaries, Infrastructure, Innovation, Incentives and Instruments – what I have called a 7i framework. Sovereign securities dominate the fixed income markets almost everywhere. In India too, the central and state governments remain the main issuers.
Despite the rapid increases in size of the Asian markets, most of the time it is changes in US or European markets that set the tone for the Asian trading day. Every so often, though, an event in Asia prompts global market responses. Surely this will happen more often in the future.