Global Financial Spillovers to Emerging Market Sovereign Bond Markets /

Foreign holdings of emerging markets (EMs) government bonds have increased substantially over the last decade. While foreign participation in local-currency sovereign bond markets provides an additional source of financing and reduces sovereign yields, it raises concerns about increased sensitivity...

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Bibliografische gegevens
Hoofdauteur: Ebeke, Christian
Andere auteurs: Kyobe, Annette
Formaat: Tijdschrift
Taal:English
Gepubliceerd in: Washington, D.C. : International Monetary Fund, 2015.
Reeks:IMF Working Papers; Working Paper ; No. 2015/141
Online toegang:Full text available on IMF
Omschrijving
Samenvatting:Foreign holdings of emerging markets (EMs) government bonds have increased substantially over the last decade. While foreign participation in local-currency sovereign bond markets provides an additional source of financing and reduces sovereign yields, it raises concerns about increased sensitivity of yields to shifts in market sentiment. The analysis in this paper suggests that foreign participation and an undiversified investor base transmit global financial shocks to local-currency sovereign bond markets by increasing yield volatility and, beyond a certain threshold, amplify these spillovers. These estimates are robust to a range of econometric techniques including panel smooth threshold regression.
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Fysieke beschrijving:1 online resource (22 pages)
Formaat:Mode of access: Internet
ISSN:1018-5941
Toegang:Electronic access restricted to authorized BRAC University faculty, staff and students