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The recent round of debt relief has restored debt sustainability in many low-income countries (LICs). This, along with a continued search for yield and desire for portfolio diversification by investors, has increased the range of viable financing options, including international bonds, for many emerging market (EM) economies and LICs. This paper presents some of the advantages and disadvantages of international debut bonds, within a debt sustainability framework. It outlines key preconditions and discusses strategic considerations that countries need to take into account when contemplating bond issuance in international markets for the first time. In this context, the paper also discusses some typical pitfalls in accessing international capital markets, including excessive issue size relative to the intended use of bond proceeds, issuance of bullet bonds, and inadequate preparation for accessing the markets.

Bonds --- Risk management --- Debts, Public --- Bond issues --- Debentures --- Insurance --- Management --- Negotiable instruments --- Securities --- Stocks --- Finance: General --- Investments: Bonds --- Public Finance --- General Financial Markets: General (includes Measurement and Data) --- Debt --- Debt Management --- Sovereign Debt --- Investment & securities --- Public finance & taxation --- Finance --- International bonds --- Government debt management --- International capital markets --- Sovereign bonds --- Capital market --- Egypt, Arab Republic of

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Many official groups have endorsed the wider use by emerging market borrowers of contract clauses which allow for a qualified majority of bondholders to restructure repayment terms in the event of financial distress. Some have argued that such clauses will be associated with moral hazard and increased borrowing costs. This paper addresses this question empirically using primary and secondary market yields and finds no evidence that the presence of collective action clauses increases yields for either higher- or lower-rated issuers. By implication, the perceived benefits from easier restructuring are at least as large as any costs from increased moral hazard.

Finance: General --- Investments: Bonds --- International Lending and Debt Problems --- International Financial Markets --- General Financial Markets: General (includes Measurement and Data) --- General Financial Markets: Government Policy and Regulation --- Investment & securities --- Finance --- Bonds --- Emerging and frontier financial markets --- International bonds --- Moral hazard --- Bond yields --- Financial institutions --- Financial markets --- Financial sector policy and analysis --- Financial services industry --- Financial risk management --- United States

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This paper reviews developments in private capital flows to developing countries since the Mexican financial crisis in December 1994. The paper points out that a strong recovery in these flows masks some significant changes in their characteristics, particularly in the type of borrowers back toward sovereigns and the currency denomination of new issues shifted away from U.S. dollars. Terms of new bond issues became significantly less favorable than before the Mexican crisis. One of the most striking developments was the sharp increase in bond placements by developing countries in deutsche mark and yen. It is shown that relatively favorable credit ratings assigned by Japanese rating agencies facilitated some developing countries to tap the yen bond market.

Finance: General --- Investments: Bonds --- Investments: Stocks --- Portfolio Choice --- Investment Decisions --- International Financial Markets --- General Financial Markets: General (includes Measurement and Data) --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Investment & securities --- Finance --- Bonds --- International bonds --- Stock markets --- Stocks --- International capital markets --- Financial institutions --- Financial markets --- Stock exchanges --- Capital market --- United States

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Growth remained strong in the region in 2012, with regional GDP rates increasing in most countries (excluding Nigeria and South Africa). Projections point to a moderate, broad-based acceleration in growth to around 5½ percent in 2013¬14, reflecting a gradually strengthening global economy and robust domestic demand. Investment in export-oriented sectors remains an important economic driver, and an agriculture rebound in drought-affected areas will also help growth. Uncertainties in the global economy are the main risk to the region’s outlook, but plausible adverse shocks would likely not have a large effect on the region’s overall performance.

Business & Economics --- Economic History --- Economic forecasting --- Africa, Sub-Saharan --- Economic conditions --- Economics --- Forecasting --- Economic indicators --- Exports and Imports --- Foreign Exchange --- Investments: Bonds --- Macroeconomics --- Public Finance --- Inflation --- General Financial Markets: General (includes Measurement and Data) --- Debt --- Debt Management --- Sovereign Debt --- Fiscal Policy --- International Lending and Debt Problems --- Energy: Demand and Supply --- Prices --- Investment & securities --- Public finance & taxation --- International economics --- Currency --- Foreign exchange --- Energy industries & utilities --- Public debt --- Sovereign bonds --- Exchange rates --- International bonds --- Fiscal policy --- Financial institutions --- Bonds --- Debts, Public --- Debts, External --- South Africa

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What determines the ability of low-income developing countries to issue bonds in international capital and what explains the spreads on these bonds? This paper examines these questions using a dataset that includes emerging markets and developing economies (EMDEs) that issued sovereign bonds at least once during the period 1995-2013 as well as those that did not. We find that an EMDE is more likely to issue a bond when, in comparison with non-issuing peers, it is larger in economic size, has higher per capita GDP, and has stronger macroeconomic fundamentals and government. Spreads on sovereign bonds are lower for countries with strong external and fiscal positions, as well as robust economic growth and government effectiveness. With regard to global factors, the results show that sovereign bond spreads are reduced in periods of lower market volatility.

Banks and Banking --- Finance: General --- Investments: Bonds --- Macroeconomics --- International Lending and Debt Problems --- International Financial Markets --- Macroeconomic Analyses of Economic Development --- General Financial Markets: General (includes Measurement and Data) --- Fiscal Policy --- Interest Rates: Determination, Term Structure, and Effects --- Investment & securities --- Finance --- Sovereign bonds --- Fiscal stance --- Yield curve --- International bonds --- International capital markets --- Financial institutions --- Fiscal policy --- Financial services --- Financial markets --- Bonds --- Interest rates --- Capital market --- United States