On the Determinants of First-Time Sovereign Bond Issues

September 1, 2003

Preview Citation

Format: Chicago

David A. Grigorian On the Determinants of First-Time Sovereign Bond Issues, (USA: International Monetary Fund, 2003) accessed December 23, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Bonds, Emerging and frontier financial markets, Financial institutions, Financial markets, International capital markets, Securities markets, Sovereign bonds

Keywords: Bonds, Capital markets, Dita sovereign bond, Eastern Europe, Emerging and frontier financial markets, Emerging market, Emerging market bond issuance, First-time market access, Global, International capital markets, Securities markets, Sovereign bond, Sovereign bond bond issue, Sovereign bond issuance, Sovereign bond issuer, Sovereign bonds, WP

Publication Details

Pages:

24
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2003/184
Stock No:

WPIEA1842003
ISBN:

9781451859386
ISSN:

1018-5941

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