On the Determinants of First-Time Sovereign Bond Issues

24 Pages Posted: 1 Feb 2006

See all articles by David Grigorian

David Grigorian

International Monetary Fund (IMF)

Date Written: September 2003

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: sovereign bonds, first-time market access, capital markets

JEL Classification: F34, G15, O16

Suggested Citation

Grigorian, David A., On the Determinants of First-Time Sovereign Bond Issues (September 2003). IMF Working Paper, Vol. , pp. 1-24, 2003. Available at SSRN: https://ssrn.com/abstract=880272

David A. Grigorian (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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