 Determinants of credit ratings, sovereign bond spreads and real interest rates in emerging marketsSaygın Şahi̇nöz and
Rauf Gönenç
Iktisat Isletme ve Finans, 2011, vol. 26, issue 305, 09-35 Abstract: The purpose of this paper is to examine the determinants of credit ratings, sovereign spreads and real interest rates for emerging market economies. Using panel data on a sample of 18 emerging markets for the period 1998 to 2008, the cross-sectional and time series dimensions of sovereign spreads, ratings and real interest rates are exploited. The results suggest that emerging markets should increase their growth, decrease their public debt and maintain the stability of their political institutions in order to improve their standing in international capital markets. Institutional quality is found to have a strong influence on credit ratings, monetary policy seems to influence both credit ratings and real interest rates and external balance has a particularly significant bearing on bond spreads of emerging countries. Results also indicate that global forces play a major role in determining real interest rates and bond spreads. Keywords: Credit Rating; Sovereign Spread; Real Interest Rate; Emerging Markets (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:iif:iifjrn:v:26:y:2011:i:305:p:09-35 Ordering information: This journal article can be ordered from Access Statistics for this article Iktisat Isletme ve Finans is currently edited by Ali Bilge More articles in Iktisat Isletme ve Finans from Bilgesel Yayincilik |
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