Market Size of APAC Fixed Income Assets Management Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 6.00 % |
| Market Concentration | Medium |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
APAC Fixed Income Assets Management Market Analysis
The COVID-19 pandemic made 2020 a year of high market volatility, and APAC asset managers responded by allocating their investments to the fixed income space.
Emerging markets have grown rapidly over the past two decades, and sovereign and corporate borrowers are increasingly reliant on bond financing. There is also widespread concern over the state of emerging market bonds as central banks in major advanced economies start to unwind quantitative easing policies and raise interest rates.
Mutual funds, which are subject to outflow pressures, liquidated their bond holdings in the relatively risky emerging Asian bond markets, while insurance companies, annuities, and pension funds, which are not subject to outflow pressures, bought extra bonds in these markets. Mutual funds tended to invest more in relatively safe assets (developed Asia-Pacific local currency government bonds) and less in relatively risky assets (developed Asia-Pacific corporate bonds).
Such risk-averse global investors create huge outflows and market turmoil during recessionary periods. In order to mitigate the impact of such behavior of global asset managers on bond markets, policymakers in APAC are fostering a truly domestic and stable institutional investor base such as domestic pension funds and insurance companies, which could act as natural buyers of bonds when foreign investors sell and dampen market volatility during stresses in market conditions.
