IMF Working Papers

Getting Shut Out of the International Capital Markets - It Doesn’t Take Much

ByNancy P. Marion, Robert P Flood

June 1, 2006

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Format: Chicago

Nancy P. Marion, and Robert P Flood. "Getting Shut Out of the International Capital Markets - It Doesn’t Take Much", IMF Working Papers 2006, 144 (2006), accessed 12/5/2025, https://doi.org/10.5089/9781451864045.001

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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

We use a simple model of international lending to show that an emerging market borrower who might default can be shut out of international capital markets without warning. A modest haircut on obligations, for example, can shut down lending.

Subject: Capital markets, Emerging and frontier financial markets, International capital markets, Loans, Return on investment

Keywords: math, mover accent, WP

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