Debt Markets: Policy Challenges in the Post-Crisis Landscape
OECD Journal: Financial Market Trends, Vol. 2010, No. 1, 2010
27 Pages Posted: 13 Oct 2010
Date Written: October 12, 2010
Discussions at the 11th OECD-WBG-IMF Global Bond Market Forum focused on four key areas: i) the impact of crisis-related measures and the potential implications of exit; ii) the measurement of sovereign risk; iii) the determinants of investor demand; and iv) debt managers’ response to the crisis. Overall, participants felt that the steps taken to stabilise financial conditions had generally been effective and that conditions in financial markets were normalising. However, discussions highlighted a number of ongoing risks including: i) while credible consolidation plans were needed, fiscal and monetary policy would be tightened too soon; ii) managing investor uncertainty would prove critical in managing risk in the near-term; and (iii) regulatory changes might lead to a deterioration in conditions in primary and secondary markets and otherwise aggravate the challenges facing debt managers.
Keywords: Debt Market, Crisis Response, Exit Strategy, Financial Market
JEL Classification: G15, G18, G20, G24, G32, G38, H62, H68
Suggested Citation: Suggested Citation