The corporate bond market in Asia has undergone significant development over the years, driven by various initiatives implemented by policymakers and regulators. However, despite these efforts, the market is still considered to be in its developing stage. Higher risk, lower liquidity, and rising economic policy uncertainties remain major barriers to its growth. This growth phase presents a compelling research opportunity to delve deeper into the factors that hinder the full-fledged progression of the corporate bond market in emerging economies. This research study aims to bridge this gap by examining the corporate bond market through the lens of credit spread, liquidity, and the rising role of economic policy uncertainty. It is imperative to understand the specific dynamics of these factors within the Asian context to address the challenges and foster market growth effectively.

This research has implications for policymakers, investors, and researchers in emerging markets. Credit spread analysis aids firms in managing costs and regulators in ensuring market stability. Understanding cross-market liquidity connectedness helps identify vulnerable markets and enhance financial stability. The study also contributes to policy decisions, investment strategies, and a better understanding of emerging market dynamics, furthering the development of theories and models in this context.