Foreign Investment in Local Currency Bonds : Considerations for Emerging Market Public Debt Managers
Foreign investors are increasingly important participants in the local currency sovereign bond markets of developing countries. This note provides context on the overall growth of local currency sovereign debt markets in emerging markets and the gr...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2012/12/17027882/foreign-investment-local-currency-bonds-considerations-emerging-market-public-debt-managers http://hdl.handle.net/10986/12152 |
| Summary: | Foreign investors are increasingly
important participants in the local currency sovereign bond
markets of developing countries. This note provides context
on the overall growth of local currency sovereign debt
markets in emerging markets and the growth of foreign
investor participation in these markets, a short review of
the relevant academic literature, and a summary of the
sources of foreign demand. The note concludes with a
discussion of the implications of growing foreign investor
participation for the managers of public domestic debt in
developing countries. The aim of the note is to provide a
useful, practically-oriented primer for debt managers
beginning to engage on this issue, and in particular to
facilitate moving the dialogue beyond overly simple
categorizations of countries as "emerging markets"
and of investors as a homogeneous source of "hot money". |
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