On the Determinants of First-Time Sovereign Bond Issues

24 Pages Posted: 1 Feb 2006

See all articles by David Grigorian

David Grigorian

International Monetary Fund (IMF)

Date Written: September 2003


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

Keywords: sovereign bonds, first-time market access, capital markets

JEL Classification: F34, G15, O16

Suggested Citation

Grigorian, David A., On the Determinants of First-Time Sovereign Bond Issues (September 2003). IMF Working Paper No. 03/184, Available at SSRN: https://ssrn.com/abstract=880272

David A. Grigorian (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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