HTML Preview Government Bond Market Development Program page number 1.
11/29/2017 Government Bond Market Development Program
http://www.worldbank.org/en/topic/financialsector/brief/government-bond-markets 1/3
(http://www.worldbank.org/)
Understanding Poverty (/en/understanding-poverty) Financial Sector (/en/topic/nancialsector)
BRIEF
Government Bond Market Development Program
December 14, 2015
(mailto:?body=http%3A%2F%2Fwww.worldbank.org%2Fen%2Ftopic%2Fnancialsector%2Fbrief%2Fgovernment-bond-markets%3Fcid%3DEXT_WBEmailShare_EXT&subject=Government%20Bond%20Market%20Development%20Program)
The World Bank Group’s Government Bond Market Development Program supports the development of local currency bond markets (LCBMs) to
increase developing countries’ attractiveness for domestic and foreign investment. Government bond markets are the cornerstone of ecient xed
income markets, which are important to support economic growth and reduce poverty. Smooth functioning xed income markets help governments
sustain policy initiatives, better match savers and investment opportunities based on risk-return preferences, facilitate capital market nancing of
enterprises and critical infrastructure projects, and reduce reliance on foreign currency borrowing and bank nancing. Developing ecient xed income
markets is vital for developing countries to make ecient use of scarce capital for productive investments and thus promote jobs and prosperity.
The team works with debt management oces in Ministries of Finance and Central Banks, and with securities regulators, to design targeted or
comprehensive solutions based on clients’ needs, and to actively support the implementation of such plans.
The team focuses on three types of developing economies:
Advanced emerging markets, enhancing the eciency of LCBMs
Middle-income countries, implementing comprehensive development reforms
Low-income countries, facing small scale and capacity challenges
Client Needs
ENSURING STABLE DEMAND FOR GOVERNMENT DEBT
Products and Services:
- Instrument choice
- Placement mechanisms and auction practices
- Primary dealer systems
- Investor base diversication
IMPROVING SECONDARY MARKET LIQUITDITY AND SUPPORTING YIELD CURVE DEVELOPMENT
Products and Services:
- Benchmark building strategy and issuance plan
-Trading platforms and market-making arrangements
-Alternate price discovery methods
-Clearing and settlement infrastructure
-Repo markets and securities lending programs
REDUCING PORTFOLIO RISK AND SUPPORTING CRISIS RESPONSE
Products and Services:
- Liability management operations
- Cash management
- Crisis response
IMPROVING CAPACITY FOR DEBT MANAGEMENT AND MARKET DEVELOPMENT
Products and Services: