The Asian Bond Market Initiative (ABMI) has been underway since 2003 and is
focused on developing national bond markets through investments by regional funds
and initiatives to develop national and regional financial infrastructure. The Asian bond
market funds created under the auspices of the ABMI invest in local currency bonds
of the member countries. The funds have helped to spur national reforms to reduce
tax, accounting and regulatory impediments to cross-border investments in bonds
(Bhattacharyay, 2011). The ABMI has also set up working groups to consider measures
for: developing new securitised bond instruments, establishment of a regional bond
guarantee agency and a regional credit rating agency, and the creation of regional
settlements and clearance systems17 (OECD, 2012).