Is it (Still) Mostly Fiscal? : Determinants of Sovereign Spreads in Emerging Markets /

Is it (Still) Mostly Fiscal? : Determinants of Sovereign Spreads in Emerging Markets /

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Bibliographic Details
Author / Creator:	Gupta, Sanjeev.
Imprint:	Washington, D.C. : International Monetary Fund, 2008. 2008
Description:	1 online resource (23 pages).
Language:	English
Series:	IMF Working Papers, 2227-8885 ; Working Paper No. 08/259 IMF Working Papers ; Working Paper no. 08/259.
Subject:	Corporate bonds -- Developing countries -- Econometric models. State bonds -- Developing countries -- Econometric models. Developing countries.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12508095

Hidden Bibliographic Details
Other authors / contributors:	Baldacci, Emanuele. Gupta, Sanjeev. Mati, Amine. International Monetary Fund.
ISBN:	1451915705 9781451915709 9781451871173 1451871171 9781451915709
Notes:	Available in PDF, ePUB, and Mobi formats on the Internet.
Summary:	Using a panel of 30 emerging market economies from 1997 to 2007, this paper investigates the determinants of country risk premiums as measured by sovereign bond spreads. Unlike previous studies, the results indicate that both fiscal and political factors matter for credit risk in emerging markets. Lower levels of political risk are associated with tighter spreads, while efforts at fiscal consolidation narrow credit spreads, especially in countries that experienced prior defaults. The composition of fiscal policy matters: spending on public investment contributes to lower spreads as long as the fiscal position remains sustainable and the fiscal deficit does not worsen.
Standard no.:	10.5089/9781451915709.001

Description
Summary:	Using a panel of 30 emerging market economies from 1997 to 2007, this paper investigates the determinants of country risk premiums as measured by sovereign bond spreads. Unlike previous studies, the results indicate that both fiscal and political factors matter for credit risk in emerging markets. Lower levels of political risk are associated with tighter spreads, while efforts at fiscal consolidation narrow credit spreads, especially in countries that experienced prior defaults. The composition of fiscal policy matters: spending on public investment contributes to lower spreads as long as the fiscal position remains sustainable and the fiscal deficit does not worsen.
Item Description:	Available in PDF, ePUB, and Mobi formats on the Internet.
Physical Description:	1 online resource (23 pages).
ISBN:	1451915705 9781451915709 9781451871173 1451871171
ISSN:	2227-8885 ;