The Effects of International Bond Issuance on Lifer’s Investments in The Bond Market.

• Main Authors: LEE, FANG-FANG, 李方芳
• Other Authors: SHIH, YI-CHENG
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/76545240358881077403

碩士 === 國立臺北大學 === 國際財務金融碩士在職專班 === 105 === The issuance of government bonds, corporate bonds and financial bonds all have influenced impact on the Taiwan bond market. The issuance of International Bonds, especially after the amendment to Article 146-4 of the Insurance Act, where International Bonds are made exempt from foreign investment limits. Numerous foreign FIs and corporates have been attracted to issue debt in Taiwan. Since rates are higher than TWD products, Taiwan FIs, mainly lifers, have turned from TWD bonds to International Bonds. Issuers now familiar with local demand has since issued longer tenor USD products. The empirical analysis is as follows: 1.Government bonds held by lifers has decreased gradually, especially after 2014, and are increasingly held by banks. Corporate bond issuance has decreased with the exception of 2016, where lifers issued 69 billion in cumulative sub-debt. Financial bonds have turned to perpetual sub-debt, which meets the yields required by lifers. This has in turn caused a slower decrease in financial debt issuance. 2.International bond issuance has had a positive impact on lifers’ foreign assets, with assets increasing with International bond issuance. Lifers’ foreign assets has a negative relationship with exchange rates. In other words, while lifers’ foreign assets increase, there is a higher likelihood of TWD depreciation. International bond issuance has also had a negative impact on the percentage of TWD bond assets, government bonds, corporate bonds and financial bonds, held by lifers.