## Tracking Global Demand for Emerging Market Sovereign Debt

_IMF Working Papers, March 5, 2014_

## Source details

**Canonical URL:** [Tracking Global Demand for Emerging Market Sovereign Debt](https://www.imf.org/en/publications/wp/issues/2016/12/31/tracking-global-demand-for-emerging-market-sovereign-debt-41399)

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## Bibliographic details
- Authors: Serkan Arslanalp, Takahiro Tsuda
- Published: March 5, 2014
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484326541.001

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### Overview
- Proposes an approach to track US$1 trillion of emerging market government debt held by foreign investors in local and hard currency, based on an approach used for advanced economies (Arslanalp and Tsuda, 2012).
- Estimates constructed on a quarterly basis from 2004 to mid-2013 and are available along with the paper in an online dataset.
- Paper extends indicators from earlier work to assess sensitivity to external funding shocks and to track foreign investors’ exposures to different markets within a global benchmark portfolio.

### Key findings
- Estimated universe tracked: US$1 trillion of emerging market government debt held by foreign investors.
- Time coverage of estimates: quarterly from 2004 to mid-2013.
- Net foreign flows into EM government debt during 2010–12: about half a trillion dollars.
- Primary source of these flows during 2010–12: foreign asset managers.
- Foreign central bank holdings have risen but remain concentrated in a few countries: Brazil, China, Indonesia, Poland, Malaysia, Mexico, and South Africa.
- Foreign investor flows to emerging markets were less differentiated during 2010–12 against the background of near-zero interest rates in advanced economies.

### Methodology and data
- Approach based on methodology previously used for advanced economies (Arslanalp and Tsuda, 2012).
- Quarterly construction of estimates for 2004–mid-2013.
- An online dataset accompanies the paper providing the underlying estimates and investor base data.

### Use of investor-base indicators
- Extended indicators demonstrate how investor base data can be used to:
  - Assess countries’ sensitivity to external funding shocks.
  - Track foreign investors’ exposures to different markets within a global benchmark portfolio.

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## Content in this bundle

- **Working Paper**
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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/tracking-global-demand-for-emerging-market-sovereign-debt-41399_