Securities markets, particularly bond markets, are increasingly in demand by emerging market countries to finance key areas with high developmental impact, such as infrastructure, housing, and microfinance.
Countries with deeper and more active domestic bond markets have the ability to mobilize private funds from national savings and channel them to the most productive sectors of the economy in need of local currency financing. Bond markets also provide long-term assets to rapidly growing institutional investors, such as pension funds and insurance companies. Furthermore, domestic bond markets help to diversify a country’s financial sector and expand risk management tools for borrowers and investors.
The joint IFC/World Bank Securities Markets Group is a global leader in fostering capital market development in emerging market countries. While we support most areas in securities markets, our primary focus is on domestic bond markets, as we see them as more urgently needed in these countries. Read more on securities markets development.