Does Sdds Subscription Reduce Borrowing Costs for Emerging Market Economies

John Cady

No 2004/058, IMF Working Papers from International Monetary Fund

Abstract: Does macroeconomic data transparency-as signaled by subscription to the IMF's Special Data Dissemination Standard (SDDS)-help reduce borrowing costs in private capital markets? This question is examined using detailed data on new issues of sovereign foreign currency-denominated (U.S. dollar, yen, and euro) bonds for several emerging market economies. Panel econometric estimates indicate that spreads on new bond issues declined by about 75 basis points following SDDS subscription.

Keywords: WP; SDDS subscription; yield; borrowing cost; SDDS discount; secondary market; Sovereign debt and yield spreads; international capital markets; standards and codes; data transparency; SDDS; SDDS coefficient estimate; emerging market yields spread; sovereign bond bond issue; SDDS data category; Special Data Dissemination Standard (SDDS); Emerging and frontier financial markets; Bonds; Securities markets; Global (search for similar items in EconPapers)
Pages: 14
Date: 2004-04-01
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Citations: View citations in EconPapers (7)

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