Capital markets

This category of the blog focuses on developments occurring in the sovereign bond market and on its main features. Among other topics, we discuss:

  • The level and behaviour of government yields; the drivers of spreads across countries and over time in bond and CDS markets.
  • The role of capital flows, large investors, and global events as determinants of yields in primary and secondary markets.
  • The role of credit rating agencies and the effect of ratings on sovereign spreads.
  • The impact of spreads on government funding strategies, debt and fiscal policies.
22 March 2021

Chile in the Wake of COVID-19: Adjustments to the Financing Strategy and Commitment to Climate Action

The COVID-19 pandemic roiled financial markets, triggering important capital outflows in emerging markets. This increased the financing challenges at a […]
3 March 2021

US Yields on the Rise: Back to 2013?

From a historic low of 0.5% back in August 2020, 10-year US Treasury yields have climbed up to 1.5% in […]
19 November 2020

[DOCUMENT] IMF Staff Discussion Note on State-Contingent Instruments

On November 19, the IMF released a paper discussing state-contingent instruments. Those are instruments for which the debt service is […]
5 November 2020

Odious debt and Hausmann-Gorky effect, from Venezuela to Belarus

Despite intense government crackdown, the popular uprising in Belarus following an allegedly rigged presidential election in August 2020 does not […]
23 September 2020

[DOCUMENT] IMF Policy Paper on the International Financial Architecture

On September 23, 2020, the IMF published a policy paper to address challenges related to private-sector sovereign debt restructurings. This […]