Manila, Oct 08: Asian countries are considering setting up a second Asian Bond Fund for countries whose ratings are under investment grade, Philippine finance secretary Jose Isidro Camacho said Tuesday. Under the scheme, non-investment grade countries will contribute to the second fund which in turn will be able to invest in these same countries, Camacho said on the sidelines of an Asian Bankers' Conference.

Thailand and Singapore are taking the lead among Asia Pacific Economic Cooperation (APEC) members in pushing for the second Asian Bond Fund, Camacho added.
"The first fund was for investment grade securities. Now there is not a very big portfolio of Asian investment grade securities. We have more non-investment grade issuers than we have investment grade issuers," Camacho said.
The Philippines is among those still regarded as a non-investment grade economy. Bureau Report