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In this study, we examine the multifractal characteristics and nonlinear interactions between the major energy commodities (crude oil, natural gas, heating oil) and the traditional and green bond markets. Using multifractal detrended cross-correlation analysis (MFDCCA) in conjunction with the maximum overlap discrete wavelet transform (MODWT) and nonlinear Granger causality tests, we discover complex dynamics and potential causality within these markets. The results of the study show strong multifractal cross-correlations between green bonds and traditional bonds with energy commodities. Green bonds are found to have a more pronounced multifractal nature compared to traditional bonds, suggesting different market dynamics in response to energy commodity price changes. This strategy advances the understanding of market movements and provides insights for risk mitigation and formulating investment plans. Our findings offer novel insights for investors, policymakers, and academics, highlighting the intricate relationships that exist between energy commodities and financial markets, with implications for portfolio diversification, risk management, and sustainable finance strategies.

This paper estimates the impact of foreign participation in determining long-term local currency government bond yields and volatility in a group of emerging markets (EMs) from 2000 to 2009. The results of a panel data analysis of 10 EMs show that greater foreign participation in the domestic government bond market tends to significantly reduce long-term government yields. Moreover, greater foreign participation does not necessarily result in increased volatility in bond yields in EMs and, in fact, could even dampen volatility in some instances.

This paper explores financial spillovers between emerging Asia and advanced economies using principal component analysis to extract common shocks in Asia. We first investigate stock market spillovers across the regions and find that spillovers from emerging Asia became significant after the global financial crisis. However, our industry-level analysis shows that the increased spillovers can be attributed to the first principal component (PC) in the manufacturing sector rather than to the first PC in the financial sector. This implies that the rise of the Asian manufacturing sector in the global market played a key role in enhancing the stock market spillovers. We next examine bilateral spillovers in short-term and long-term rates. In the tapering period, we find significant spillovers in long-term rates from the first PC in emerging Asia to Europe and the United States. However, these spillovers were much smaller than the stock market spillovers in magnitude.

The principal thesis of this paper is growth and development of the debt securities markets in Asia, which resulted in financial deepening. In the post-Asian financial crisis period development of Asian currency dominated long-term bond markets was given a high priority. Conception and launch of the ABMI initiative proved to be exceedingly meaningful in this regard. Additionally, with an objective to develop well-capitalized regional bond markets, the EMEAP group of central banks launched the Asian Bond Fund or the ABF1 and ABF2. This process was exceedingly helpful in providing opportunities for learning the game of issuing and investing in bonds. In the post-Asian crisis phase central bankers and finance ministries in several Asian economies were successful in their efforts to develop domestic or local currency bond markets, which included both the government and corporate bond sectors. The paper discusses both the government and corporate bond markets in Asia. During the decade of the 2000s domestic debt securities markets in several Asian economies expanded dramatically. This paper shows that the global financial crisis and the Eurozone sovereign debt crisis have had both direct and indirect impacts over the global economy. However, statistical data show that the global financial crisis (2007–2009) had only a minor impact on the Asian bond issue trend.