Wahyu Dwi Anggoro
“Higher borrowing costs pose a challenge especially for borrowers with weak governance and balance sheets," Park added.
On the other hand, a faster-than-expected decline in inflation in advanced economies, combined with a cooling in the job market and/or lessened financial stability and growth concerns, might lead to less hawkish monetary stances, the report says.
Emerging East Asia comprises the Association of Southeast Asian Nations (ASEAN) members, China, Hong Kong, and South Korea.
Total outstanding bonds in the region increased 2.0% in the 3 months through June to $23.1 trillion. The expansion in both the government and corporate sectors slowed from the previous quarter. Many governments had frontloaded issuance in the first quarter of the year, while both government and corporate bonds were subject to sizeable amounts of maturities in almost all markets.
Sustainable bonds in ASEAN plus China, Japan, and South Korea (ASEAN+3) expanded 5.1% from the previous quarter to $694.4 billion, accounting for 19.1% of global sustainable bonds outstanding. ASEAN+3 remains the world’s second-largest regional sustainable bond market after the European Union, although the segment only accounts for 1.9% of the group’s overall bond market. (WHY)
