A decade and a half since the Asian Financial Crisis, the turmoil in Europe has left Asia looking like a safe bet. IFR’s Asia Pacific bureau chief, who reported extensively on the crisis, asks if the shock of 1997 could ever recur.

Asia’s newfound love affair with bonds is transforming the region’s capital markets. Equities have lost much of their traditional appeal as investors struggle to cope with volatility, and even risk-hungry private-banking clients have turned to fixed income. Will Asia ever return to habit?

Asia’s emerging economies appear to be in an enviable position relative to much of Europe or the US, but another, potentially far more serious, risk is emerging. Recent tensions surrounding the ownership of islands, involving Japan, China and South Korea, have shown that aggressive nationalism is bubbling just below the surface – and cannot be ignored.

A good year for investment banking is boom time for Asia’s recruitment consultants. After another dismal showing, however, many are rethinking their approach. The next big payday looks likely to be a long way away.

After an unstable, but robust year, Asian currencies are set to continue reaping benefits in 2013 on solid domestic growth and global central bank easing. However, economic uncertainties in Europe, the US and China threaten to upset momentum in the region.

Asia’s bond market veterans may be patting themselves on the back for lifting the region’s debt markets to new heights, but not everyone is so easily impressed. IFR Asia’s resident debt market columnist looks at the real reasons behind a record-breaking year for Asian bonds.