Asian Bond Fund - ABF

AAA

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.

INVESTOPEDIA EXPLAINS '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. Bond Fund

    A fund invested primarily in bonds and other debt instruments. ...
  2. Denomination

    A classification for the stated or face value of financial instruments, ...
  3. Bond Market

    The environment in which the issuance and trading of debt securities ...
  4. Fixed Income

    A type of investing or budgeting style for which real return ...
  5. Executives' Meeting of East Asia ...

    An organization of 11 central banks from the southeast and Pacific ...
  6. Bank For International Settlements ...

    An international organization fostering the cooperation of central ...
Related Articles
  1. The Advantages Of Bonds
    Investing

    The Advantages Of Bonds

  2. Evaluating Bond Funds: Keeping It Simple
    Mutual Funds & ETFs

    Evaluating Bond Funds: Keeping It Simple

  3. Bond Basics Tutorial
    Retirement

    Bond Basics Tutorial

  4. What You Need To Know About Preferred ...
    Trading Strategies

    What You Need To Know About Preferred ...

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center