On the Determinants of First-Time Sovereign Bond Issues

David Grigorian

No 2003/184, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; sovereign bond; emerging market; sovereign bonds; first-time market access; capital markets; sovereign bond bond issue; sovereign bond issuance; Dita sovereign bond; sovereign bond issuer; emerging market bond issuance; Bonds; Emerging and frontier financial markets; Securities markets; International capital markets; Eastern Europe; Global (search for similar items in EconPapers)
Pages: 24
Date: 2003-09-01
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Citations: View citations in EconPapers (15)

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