A second conclusion is that the extent to which investors rebalance their portfolios towards foreign bonds is likely to depend on the structure of local bond markets, in particular the holding composition, and the risk-adjusted return investors can expect to receive from switching domestic and foreign bonds.
Felipe M Medalla: Creating a resilient financial system amid interconnected risks - balancing growth and inflation while minimizing disruptions Speech by Mr Felipe M Medalla, Governor of Bangko Sentral ng Pilipinas (BSP, the central bank of the Philippines), at the release of the 2022 Financial Stability Report, Manila, 9 January 2023. *** Good afternoon, everyone, especially all my colleagues in government.