## On the Determinants of First-Time Sovereign Bond Issues

_IMF Working Papers, September 1, 2003_

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## Bibliographic details
- Authors: David A. Grigorian
- Published: September 1, 2003
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451859386.001

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### Summary
- 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 derives the relationship between internal and external factors and market access using a simple macro model.
- The market access condition is translated into a simple rule that requires an excess demand for the sovereign bonds in question.
- Regression results based on this model offer insights into peculiarities of first-time sovereign bond issues that could be used in policy deliberations.

### Major findings and analytical approach
- Analytical framework:
  - Uses a simple macro model to link internal and external determinants to market access.
  - Translates market access condition into a practical rule: excess demand for the sovereign bonds is required for market access.
- Empirical approach:
  - Regression analysis based on the model is used to investigate determinants of first-time sovereign bond issues.
- Key qualitative finding:
  - First-time sovereign bond issuance is associated with demonstrated policy success and improved creditworthiness, facilitating graduation from official financing recipient status to emerging market status.

### Policy implications and uses
- The simple rule (excess demand requirement) provides a potentially actionable criterion for policymakers considering first-time sovereign bond issuance.
- Regression-based insights highlight peculiarities of first-time issues that can inform policy deliberations on timing and conditions for entering international capital markets.

### Publication and metadata
- ByDavid A. Grigorian
- September 1, 2003
- IMF Working Papers
- Pages: 24
- Volume: 2003
- Issue: 184
- Series: Working Paper No. 2003/184
- DOI: https://doi.org/10.5089/9781451859386.001
- Stock No: WPIEA1842003
- ISBN: 9781451859386
- ISSN: 1018-5941
- Subject: Bonds, Emerging and frontier financial markets, Financial institutions, Financial markets, International capital markets, Securities markets, Sovereign bonds
- Keywords: Bonds, capital markets, Dita sovereign bond, Eastern Europe, Emerging and frontier financial markets, emerging market, emerging market bond issuance, first-time market access, Global, International capital markets, Securities markets, sovereign bond, sovereign bond bond issue, sovereign bond issuance, sovereign bond issuer, sovereign bonds, WP

*Source: On the Determinants of First-Time Sovereign Bond Issues, IMF Working Paper No. 2003/184.*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/on-the-determinants-of-first-time-sovereign-bond-issues-16845_