Fixed income Asian options are used by companies to manage interest rate risk. A study looked at the relationship between bond and volatility risk premiums in an emerging fixed income market. They developed a model that shows a strong correlation between bond risk premium and an emerging market benchmark index. The model also revealed a negative volatility risk premium, indicating the use of Asian options as insurance in this market. The volatility premium explains a significant portion of the bond premium, showing that the Asian options market impacts bond prices.