{
  "title": "First-Time International Bond Issuance—New Opportunities and Emerging Risks",
  "publication": "IMF Working Papers, July 18, 2014",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/first-time-international-bond-issuance-new-opportunities-and-emerging-risks-41762",
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  "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.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- International bond issuance by debut issuers has risen in recent years.\n- The uptick was a result of both demand and supply factors.\n- Demand-side factors: the search for yield and demand for portfolio diversification have resulted in demand-driven easy financing conditions.\n- Supply-side factors: rising financing needs for many debut issuers, 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.\n- Typical features of these international bonds: denominated in hard currencies, large volumes, and a bullet structure.\n- Increased exposures: exchange rate risk and refinancing risk have increased for debut issuers.\n- Implication: risk-mitigating policy actions are needed to prepare for redemption, support debt sustainability, and secure adequate debt management capacity."
    },
    {
      "heading": "Key Findings",
      "content": "- Debut international bond issuance has increased, driven by:\n  - Search for yield and portfolio diversification on the investor side.\n  - Rising financing needs, reduced concessional financing, undeveloped domestic markets, and favorable interest rates on the issuer side.\n- Characteristics of issuance that affect risk:\n  - Denomination in hard currencies.\n  - Large issuance volumes.\n  - Bullet repayment structures.\n- Resulting elevated risks:\n  - Exchange rate risk.\n  - Refinancing risk."
    },
    {
      "heading": "Policy Recommendations and Implications",
      "content": "- Implement risk-mitigating policy actions to:\n  - Prepare for redemption events.\n  - Support debt sustainability.\n  - Secure adequate debt management capacity.\n\n---\n\n Content in this bundle\n\n- wp14127\n  - wp14127 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp14127 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/first-time-international-bond-issuance-new-opportunities-and-emerging-risks-41762"
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    "Authors: Anastasia Guscina, Guilherme Pedras, Gabriel Presciuttini",
    "Published: July 18, 2014",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781498390699.001",
    "International bond issuance by debut issuers has risen in recent years.",
    "The uptick was a result of both demand and supply factors.",
    "Demand-side factors: the search for yield and demand for portfolio diversification have resulted in demand-driven easy financing conditions.",
    "Supply-side factors: rising financing needs for many debut issuers, 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.",
    "Typical features of these international bonds: denominated in hard currencies, large volumes, and a bullet structure.",
    "Increased exposures: exchange rate risk and refinancing risk have increased for debut issuers.",
    "Implication: risk-mitigating policy actions are needed to prepare for redemption, support debt sustainability, and secure adequate debt management capacity.",
    "Debut international bond issuance has increased, driven by:",
    "Characteristics of issuance that affect risk:",
    "Resulting elevated risks:",
    "Implement risk-mitigating policy actions to:",
    "**_wp14127**"
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