First-Time International Bond Issuance—New Opportunities and Emerging Risks

 
Author/Editor: Anastasia Guscina ; Guilherme Pedras ; Gabriel Presciuttini
 
Publication Date: July 18, 2014
 
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Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
 
Summary: International bond issuance by debut issuers has risen in recent years. The uptick was a result of both demand and supply factors. The search for yield and demand for portfolio diversification have resulted in demand-driven easy financing conditions. At the same time, rising financing needs for many debut issuers, coupled with reduced access to concessional financing, relatively undeveloped domestic markets, and a favorable interest rate environment have made international bonds an attractive financing alternative for many countries. As bonds issued in the international markets are typically denominated in hard currencies, have large volumes and a bullet structure, exposure to exchange rate and refinancing risk has increased. Therefore, risk-mitigating policy actions are needed to prepare for redemption, support debt sustainability, and secure adequate debt management capacity.
 
Series: Working Paper No. 14/127
Subject(s): Bond issues | International bond markets | Bonds | External borrowing | External debt | Fiscal risk

 
English
Publication Date: July 18, 2014
ISBN/ISSN: 9781498390699/1018-5941 Format: Paper
Stock No: WPIEA2014127 Pages: 40
Price:
US$18.00 (Academic Rate:
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