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.
21 September 2022
Current geopolitical tensions are spilling over to sovereign debt markets. They raise questions related to technical defaults, willingness versus ability […]
22 March 2021
The COVID-19 pandemic roiled financial markets, triggering important capital outflows in emerging markets. This increased the financing challenges at a […]
3 March 2021
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
On November 19, the IMF released a paper discussing state-contingent instruments. Those are instruments for which the debt service is […]
5 November 2020
Despite intense government crackdown, the popular uprising in Belarus following an allegedly rigged presidential election in August 2020 does not […]
23 September 2020
On September 23, 2020, the IMF published a policy paper to address challenges related to private-sector sovereign debt restructurings. This […]