Sovereign Borrowing Cost and the IMF’s Data Standards Initiatives

March 1, 2006

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Format: Chicago

John Cady, and Anthony J. Pellechio Sovereign Borrowing Cost and the IMF’s Data Standards Initiatives, (USA: International Monetary Fund, 2006) accessed December 26, 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

The effects of the IMF's data standards initiatives on sovereign borrowing costs in private capital markets are investigated for 26 emerging market and developing countries. Stable and significant panel econometric estimates indicate that subscription to the Special Data Dissemination Standard (SDDS) reduces launch spreads by an average of 20 percent while participation in the General Data Dissemination System (GDDS) reduces spreads for those countries with access to capital markets by an average of 8 percent. These estimates correspond to discounts of some 50 and 20 basis points, respectively. Evidence of similar discounts is also found when launch yields are analyzed.

Subject: Credit ratings, Data dissemination, Financial statistics, Special Data Dissemination Standard (SDDS)

Keywords: Launch yield, WP, Yield

Publication Details

Pages:

26
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2006/078
Stock No:

WPIEA2006078
ISBN:

9781451863383
ISSN:

1018-5941

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