On The Determinants Of First Time Sovereign Bond Issues

Author : Mr.David A. Grigorian
Publisher : International Monetary Fund
Page : 24 pages
File Size : 44,5 Mb
Release : 2003-09-01
Category : Business & Economics
ISBN : 9781451859386

Get Book

On the Determinants of First-Time Sovereign Bond Issues by Mr.David A. Grigorian Pdf

In recent years, the number of countries which have borrowed in international capital markets by issuing sovereign bonds has increased substantially. For these countries, capital market access meant a de facto acknowledgement of their policy successes and improvements in their creditworthiness that enabled them to graduate from the group of official financing recipients into a more advanced group of emerging market economies. The paper looks at the determinants of sovereign bond issuances and derives the relationship between internal and external factors and market access using a simple macro model. The market access condition is then translated into a simple rule that requires an excess demand for the sovereign bonds in question. Regression results based on this model offer some insights into peculiarities of first-time sovereign bond issues that could be used in policy deliberations.

Author : Ms.Anastasia Guscina,Mr.Guilherme Pedras,Gabriel Presciuttini
Publisher : International Monetary Fund
Page : 40 pages
File Size : 46,8 Mb
Release : 2014-07-18
Category : Business & Economics
ISBN : 9781498390699

Get Book

First-Time International Bond Issuance—New Opportunities and Emerging Risks by Ms.Anastasia Guscina,Mr.Guilherme Pedras,Gabriel Presciuttini Pdf

International bond issuance by debut issuers has risen in recent years. The uptick was a result of both demand and supply factors. The search for yield and demand for portfolio diversification have resulted in demand-driven easy financing conditions. At the same time, rising financing needs for many debut issuers, coupled with reduced access to concessional financing, relatively undeveloped domestic markets, and a favorable interest rate environment have made international bonds an attractive financing alternative for many countries. As bonds issued in the international markets are typically denominated in hard currencies, have large volumes and a bullet structure, exposure to exchange rate and refinancing risk has increased. Therefore, risk-mitigating policy actions are needed to prepare for redemption, support debt sustainability, and secure adequate debt management capacity.

Author : Udaibir S. Das,Michael G. Papaioannou,Magdalena Polan
Publisher : Unknown
Page : 30 pages
File Size : 53,9 Mb
Release : 2008
Category : Bonds
ISBN : IND:30000087927996

Get Book

Strategic Considerations for First-time Sovereign Bond Issuers by Udaibir S. Das,Michael G. Papaioannou,Magdalena Polan Pdf

The recent round of debt relief has restored debt sustainability in many low-income countries (LICs). This, along with a continued search for yield and desire for portfolio diversification by investors, has increased the range of viable financing options, including international bonds, for many emerging market (EM) economies and LICs. This paper presents some of the advantages and disadvantages of international debut bonds, within a debt sustainability framework. It outlines key preconditions and discusses strategic considerations that countries need to take into account when contemplating bond issuance in international markets for the first time. In this context, the paper also discusses some typical pitfalls in accessing international capital markets, including excessive issue size relative to the intended use of bond proceeds, issuance of bullet bonds, and inadequate preparation for accessing the markets.

Author : David A. Grigorian
Publisher : Unknown
Page : 28 pages
File Size : 43,5 Mb
Release : 2003
Category : Capital market
ISBN : UCSD:31822033354820

Get Book

On the Determinants of First-time Sovereign Bond Issues by David A. Grigorian Pdf

Author : Mr.Mauro Mecagni,Mr.Jorge I Canales Kriljenko,Cheikh A. Gueye,Mr.Yibin Mu,Mr.Masafumi Yabara,Mr.Sebastian Weber
Publisher : International Monetary Fund
Page : 37 pages
File Size : 53,7 Mb
Release : 2014-06-04
Category : Business & Economics
ISBN : 9781475523102

Get Book

Issuing International Sovereign Bonds by Mr.Mauro Mecagni,Mr.Jorge I Canales Kriljenko,Cheikh A. Gueye,Mr.Yibin Mu,Mr.Masafumi Yabara,Mr.Sebastian Weber Pdf

This African Department Paper examines the rise in international sovereign bonds issued by African frontier economies and recommends policies for potential first-time issuers.

Author : Iva Petrova,Mr.Michael G Papaioannou,Mr.Dimitri Bellas
Publisher : International Monetary Fund
Page : 27 pages
File Size : 43,7 Mb
Release : 2010-12-01
Category : Business & Economics
ISBN : 9781455210886

Get Book

Determinants of Emerging Market Sovereign Bond Spreads by Iva Petrova,Mr.Michael G Papaioannou,Mr.Dimitri Bellas Pdf

This paper analyses the determimants of emerging market sovereign bond spreads by examining the short and long-run effects of fundamental (macroeconomic) and temporary (financial market) factors on these spreads. During the current global financial and economic crisis, sovereign bond spreads widened dramatically for both developed and emerging market economies. This deterioration has widely been attributed to rapidly growing public debts and balance sheet risks. Our results indicate that in the long run, fundamentals are significant determinants of emerging market sovereign bond spreads, while in the short run, financial volatility is a more important determinant of sperads than fundamentals indicators.

Author : Ms.Anastasia Guscina,Mr.Guilherme Pedras,Gabriel Presciuttini
Publisher : International Monetary Fund
Page : 40 pages
File Size : 47,9 Mb
Release : 2014-07-18
Category : Business & Economics
ISBN : 9781498310680

Get Book

First-Time International Bond Issuance—New Opportunities and Emerging Risks by Ms.Anastasia Guscina,Mr.Guilherme Pedras,Gabriel Presciuttini Pdf

International bond issuance by debut issuers has risen in recent years. The uptick was a result of both demand and supply factors. The search for yield and demand for portfolio diversification have resulted in demand-driven easy financing conditions. At the same time, rising financing needs for many debut issuers, coupled with reduced access to concessional financing, relatively undeveloped domestic markets, and a favorable interest rate environment have made international bonds an attractive financing alternative for many countries. As bonds issued in the international markets are typically denominated in hard currencies, have large volumes and a bullet structure, exposure to exchange rate and refinancing risk has increased. Therefore, risk-mitigating policy actions are needed to prepare for redemption, support debt sustainability, and secure adequate debt management capacity.

Author : Andrea Presbitero,Mr.Dhaneshwar Ghura,Mr.Olumuyiwa Adedeji,Lamin Njie
Publisher : International Monetary Fund
Page : 27 pages
File Size : 45,8 Mb
Release : 2015-12-24
Category : Business & Economics
ISBN : 9781513581729

Get Book

International Sovereign Bonds by Emerging Markets and Developing Economies by Andrea Presbitero,Mr.Dhaneshwar Ghura,Mr.Olumuyiwa Adedeji,Lamin Njie Pdf

What determines the ability of low-income developing countries to issue bonds in international capital and what explains the spreads on these bonds? This paper examines these questions using a dataset that includes emerging markets and developing economies (EMDEs) that issued sovereign bonds at least once during the period 1995-2013 as well as those that did not. We find that an EMDE is more likely to issue a bond when, in comparison with non-issuing peers, it is larger in economic size, has higher per capita GDP, and has stronger macroeconomic fundamentals and government. Spreads on sovereign bonds are lower for countries with strong external and fiscal positions, as well as robust economic growth and government effectiveness. With regard to global factors, the results show that sovereign bond spreads are reduced in periods of lower market volatility.

Author : Mr.Giovanni Dell'Ariccia,Caio Ferreira,Nigel Jenkinson,Mr.Luc Laeven,Alberto Martin,Ms.Camelia Minoiu,Alex Popov
Publisher : International Monetary Fund
Page : 54 pages
File Size : 44,8 Mb
Release : 2018-09-07
Category : Business & Economics
ISBN : 9781484359624

Get Book

Managing the Sovereign-Bank Nexus by Mr.Giovanni Dell'Ariccia,Caio Ferreira,Nigel Jenkinson,Mr.Luc Laeven,Alberto Martin,Ms.Camelia Minoiu,Alex Popov Pdf

This paper reviews empirical and theoretical work on the links between banks and their governments (the bank-sovereign nexus). How significant is this nexus? What do we know about it? To what extent is it a source of concern? What is the role of policy intervention? The paper concludes with a review of recent policy proposals.

Author : Carlos A. Primo Braga,D rte D meland
Publisher : World Bank Publications
Page : 480 pages
File Size : 51,7 Mb
Release : 2009-10-02
Category : Business & Economics
ISBN : 0821378759

Get Book

Debt Relief and Beyond by Carlos A. Primo Braga,D rte D meland Pdf

The history of debt relief goes back several decades. It reveals that a country s accumulation of unsustainable debt stems from such factors as deficiencies in macroeconomic management, adverse terms-of-trade shocks, and poor governance. Debt-relief initiatives have provided debt-burdened countries with the opportunity for a fresh start, but whether the benefits of debt relief can be preserved depends on transformations in a country s policies and institutions. In 1996, the Heavily Indebted Poor Countries (HIPC) Initiative was launched as the first comprehensive, multilateral, debt-relief framework for low-income countries. In 2005, the Multilateral Debt Relief Initiative was established, which increased the level of debt relief provided to HIPCs. As of early 2009, assistance through these two initiatives had been committed to 35 countries and amounted to US$117 billion in nominal terms, or half of the 2007 GDP of these countries. 'Debt Relief and Beyond' assesses the implications of debt relief for low-income countries and how its benefits can be preserved and used to fight poverty. The chapter authors bring unique operational experience to their examination of debt relief, debt sustainability, and debt management. Several key questions are addressed, including, what consequences does debt relief have for poverty-reducing expenditures, growth, and access to finance? Can debt relief guarantee debt sustainability? How can debt management at all levels of government be improved? What lessons can be learned from countries that have experienced debt restructuring? Finally, this book provides sound empirical evidence using current econometric techniques.

Author : Norbert Gaillard
Publisher : Springer Nature
Page : 266 pages
File Size : 49,6 Mb
Release : 2020-07-06
Category : Business & Economics
ISBN : 9783030457884

Get Book

Country Risk by Norbert Gaillard Pdf

Country risk has been a key notion for economists, financiers, and investors. Norbert Gaillard defines this notion as “any macroeconomic, microeconomic, financial, social, political, institutional, judiciary, climatic, technological, or sanitary risk that affects (or could affect) an investor in a foreign country. Damages may materialize in several ways: financial losses; threat to the safety of the investing company’s employees, clients, or consumers; reputational damage; or loss of a market or supply source.” Chapter 1 introduces the key concepts. Chapter 2 investigates how country risk has evolved and manifested since the advent of the Pax Britannica in 1816. It describes the international political and economic environment and identifies the main obstacles to foreign investment. Chapter 3 documents the numerous forms that country risk may take and provides illustrations of them. Seven broad components of country risk are scrutinized in turn: international political risks; domestic political and institutional risks; jurisdiction risks; macroeconomic risks; microeconomic risks; sanitary, health, industrial, and environmental risks; and natural and climate risks. Chapter 4 focuses on sovereign risk. It presents the rating methodologies used by four raters; next, it measures and compares their performance (i.e., their ability to forecast sovereign defaults). Chapter 5 studies the risks likely to affect exporters, importers, foreign creditors of corporate entities, foreign shareholders, and foreign direct investors. It presents the rating methodologies used by seven raters and measures their track records in terms of anticipating eight types of shocks that reflect the main components of country risk analyzed in Chapter 3. This book will be most relevant to graduate students in economics as well as professional economists and international investors.

Author : Eduardo Engel,Francisco Ferreira,Roberto Rigobón
Publisher : Brookings Institution Press
Page : 182 pages
File Size : 49,9 Mb
Release : 2010-12-01
Category : Business & Economics
ISBN : 9780815704683

Get Book

Economia: Fall 2009 by Eduardo Engel,Francisco Ferreira,Roberto Rigobón Pdf

Tentative contents include Credit Ratings in the Presence of Bailout: The Case of Mexican Subnational Government Debt Fausto Hernández-Trillo and Ricardo Smith-Ramírez (CIDE) Thirty Years of Currency Crises in Argentina: External Shocks or Domestic Fragility? Graciela Kaminsky (George Washington University), Amine Mati (IMF), and Nada Choueiri (IMF) Do Longer School Days Have Enduring Educational, Occupational, or Income Effects? A Natural Experiment on the Effects of Lengthening Primary School Days in Buenos Aires, Argentina Juan J. Llach (IAE-Universidad Austral, Argentina), Cecilia Adrogué (Universidad de San Andrés, Argentina), and María Elina Gigaglia (IAE-Universidad Austral) Who Saw Sovereign Debt Crises Coming? Sebastián Nieto-Parra (OECD)

Author : Victor Hugo C. Alexandrino da Silva,Luiza Antoun de Almeida,Ms. Diva Singh
Publisher : International Monetary Fund
Page : 55 pages
File Size : 47,5 Mb
Release : 2021-05-07
Category : Business & Economics
ISBN : 9781513573656

Get Book

Determinants of and Prospects for Market Access in Frontier Economies by Victor Hugo C. Alexandrino da Silva,Luiza Antoun de Almeida,Ms. Diva Singh Pdf

In recent years, we have observed an increase in low-income countries’ (LICs) access to international capital markets, especially after the Global Financial Crisis (GFC). This paper investigates what factors—country-specific macroeconomic fundamentals and/or external variables—have contributed to the surge in external bond issuance by these LICs, which we refer to in our paper as ‘frontier economies’. Using data on public and publicly guaranteed (PPG) external bond issuance, outstanding PPG bond stock, as well as sovereign spreads, we employ panel data analysis to examine factors related to the increase in issuance by these economies as well as the reduction in their spreads over time. Our empirical study shows that both country-specific fundamentals (such as public debt, current account balance, level of reserves, quality of institutions) and external variables (such as US growth and the VIX index) play a role in explaining the increased amount of issuance and the decline in spreads of frontier economies’ sovereign bonds. The impact of some of these variables on issuance appears to reflect a country’s need to issue bonds for external financing (‘the supply side’ of bond issuance), while others appear to correlate more through their impact on investors’ appetite for a country’s debt (‘the demand side’). In addition, the impact of country-specific variables can also be affected by external factors such as global risk appetite. Our analysis of key factors that have contributed to increased market access for frontier economies over the past decade provides important information to gauge the prospects for their continued market access, and for other LICs to join this group by tapping international markets for the first time.

Author : Thordur Jonasson,Mr.Michael G. Papaioannou
Publisher : International Monetary Fund
Page : 133 pages
File Size : 42,9 Mb
Release : 2018-04-06
Category : Business & Economics
ISBN : 9781484350546

Get Book

A Primer on Managing Sovereign Debt-Portfolio Risks by Thordur Jonasson,Mr.Michael G. Papaioannou Pdf

This paper provides an overview of sovereign debt portfolio risks and discusses various liability management operations (LMOs) and instruments used by public debt managers to mitigate these risks. Debt management strategies analyzed in the context of helping reach debt portfolio targets and attain desired portfolio structures. Also, the paper outlines how LMOs could be integrated into a debt management strategy and serve as policy tools to reduce potential debt portfolio vulnerabilities. Further, the paper presents operational issues faced by debt managers, including the need to develop a risk management framework, interactions of debt management with fiscal policy, monetary policy, and financial stability, as well as efficient government bond markets.

Author : Kady Keita,Mr.Gene L. Leon,Frederico Lima
Publisher : International Monetary Fund
Page : 29 pages
File Size : 45,8 Mb
Release : 2019-10-11
Category : Business & Economics
ISBN : 9781513516127

Get Book

Do Financial Markets Value Quality of Fiscal Governance? by Kady Keita,Mr.Gene L. Leon,Frederico Lima Pdf

We examine the link between the quality of fiscal governance and access to market-based external finance. Stronger fiscal governance is associated with improvements in several indicators of market access, including a higher likelihood of issuing sovereign bonds and having a sovereign credit rating, receiving stronger ratings, and obtaining lower spreads. Using the more granular information on quality of fiscal governance from Public Expenditure and Financial Accountability (PEFA) assessments for 89 emerging and developing economies, we find that similar indicators of market access are correlated with sound public financial management practices, especially those that improve budget transparency and reporting, debt management, and fiscal strategy.