Template-Type: ReDIF-Article 1.0
Author-Name: Bernardus F Nazar Van Doornik
Author-Name: Jon Frost
Author-Name: Rafael Guerra
Author-Name: Alexandre Tombini
Author-Name: Christian Upper
Title: Towards liquid and resilient government debt markets in EMEs
Abstract: Over the last 20 years, government debt markets in emerging market economies (EMEs) have grown and matured. Not only has it become easier for foreign investors to participate in these markets, but also the local investor base has deepened. Our findings show that the investor base and size of hedging markets affect the liquidity and resilience of EME government debt markets. In times of stress, a greater presence of domestic banks helps stabilise liquidity conditions, while domestic and foreign non-banks could propagate external shocks. Countries with more developed hedging markets exhibit more resilient liquidity conditions after major shocks.
Journal: BIS Quarterly Review
File-URL: http://www.bis.org/publ/qtrpdf/r_qt2403e.pdf
File-Format: Application/pdf
File-URL: http://www.bis.org/publ/qtrpdf/r_qt2403e.htm
File-Format: text/html
Year: 2024
Month: March
Classification-JEL: D53, E63, G15, G18, H63
Handle: RePEc:bis:bisqtr:2403e