BIS to administer EMEAP’s Second Stage Asian Bond
The Executive Meeting of East Asia and Pacific Central Banks (EMEAP) announced that its second stage Asian Bond Fund will be administered by the Bank for International Settlements (BIS). The EMEAP consists of 11 central banks and monetary authorities in the East Asia and Pacific region. The second stage Asian Bond Fund (ABF2) will invest in domestic currency bonds issued by sovereign and quasi-sovereign issuers in eight of the EMEAP markets. The EMEAP group’s investments in ABF2 will total around $2bn. BIS said that ABF2 was a significant initiative that aimed to bring real benefits to domestic capital markets in Asia by promoting fixed income investment and providing an impetus for improving market infrastructure.