DEFINITION of 'Asian Bond Fund - ABF'

A type of bond fund launched by the Executives' Meeting of East Asia and Pacific Central Banks (EMEAP) group that allows its members to invest in bonds issued by Asian sovereign issuers in EMEAP economies. Managed by the Bank for International Settlements, the inaugural Asian bond fund was a US$1 billion issue that was launched in June 2003.

BREAKING DOWN 'Asian Bond Fund - ABF'

Although the original ABF issue was denominated in U.S. dollars, the second ABF issue was denominated in member currency funds. Overall, the main goal of this bond fund is to further enhance the underdeveloped bond markets of EMEAP member countries by enhancing the efficiency of financial intermediation and promoting financial stability.

Another reason for the establishment of this class of bond funds is to give some Asian countries, who have built up massive foreign reserves, the opportunity to invest in financial assets that would return benefits back to the region.

RELATED TERMS
  1. Global Bond

    This type of bond can be traded in a domestic or European market. ...
  2. International Bond

    Debt investments that are issued in a country by a non-domestic ...
  3. Foreign Bond

    A bond that is issued in a domestic market by a foreign entity, ...
  4. Issue

    1. The process of offering securities as an attempt to raise ...
  5. Total Bond Fund

    A mutual fund or exchange-traded fund that seeks to replicate ...
  6. Bond Market

    The environment in which the issuance and trading of debt securities ...
Related Articles
  1. Investing

    How Exchange Risk Affects Foreign Bonds

    Investors include foreign bonds in their portfolios to take advantage of higher interest rates or yields, and to diversify their holdings. However, the higher return expected from investing in ...
  2. Investing

    Investing in High-Yield Corporate Bond Funds

    High-yield corporate bond funds provide an interesting investment option, particularly for private investors chasing returns and a broad diversification.
  3. Investing

    Basics Of Federal Bond Issues

    Treasuries are considered the safest investments, but they should still be analyzed when issued.
  4. Investing

    Evaluating Bond Funds: Keeping It Simple

    Discover some of the key factors for determining a fund's risk-return profile.
  5. Investing

    How To Choose The Right Bond For You

    Bond investing is a stable and low-risk way to diversify a portfolio. However, knowing which types of bonds are right for you is not always easy.
  6. Investing

    The Top 5 Short-Term Bond Funds for 2016

    Learn how short-duration bonds can add value to an asset allocation strategy, and discover the top five short-term bond funds for 2016.
  7. Investing

    Why Muni Bonds and Bond Funds are Perfect Together

    Municipal bonds and bond funds differ in several ways, which is partly why they complement each other well.
  8. Investing

    The Top 5 Bond Mutual Funds for 2016

    Learn about bond mutual funds that investors may want to consider for 2016. Understand why the risk of rising interest rates is a concern heading into 2016.
  9. Financial Advisor

    How Rising Rates Impact Bond Mutual Funds

    The interest rate increase by the Fed was one of the most widely anticipated in history. Here's what it means for bond mutual funds.
RELATED FAQS
  1. What determines the price of a bond in the open market?

    Learn more about some of the factors that influence the valuation of bonds on the open market, and why bond prices and yields ... Read Answer >>
  2. What forms of debt security are available for the average investor?

    Discover the various different types of debt securities, issued by government entities or corporations, that are available ... Read Answer >>
Hot Definitions
  1. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment is made with the expectation of earning a return on it. This ...
  2. Treynor Ratio

    A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless ...
  3. Buyback

    The repurchase of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies ...
  4. Tax Refund

    A tax refund is a refund on taxes paid to an individual or household when the actual tax liability is less than the amount ...
  5. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced within a country's borders in a specific time period, ...
  6. Inflation

    The rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of ...
Trading Center