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Understanding the Dynamics of Sovereign Bond Market Integration

Posted by
Swiss Finance Institute
Monday, April 3, 2017 - 08:00

Local currency debt is significant in developed markets and increasingly important in emerging markets. Over the past decade and across major emerging markets, the average fraction of external sovereign debt in local currency increased from around 15 to almost 60 percent. Despite the impor­tance of this asset class, not much is known about the extent to which sovereign bonds denominated in local currency are integrated into the world bond market, how this level of integration has varied over time, and what the drivers of sovereign bond market integration are.


Read the latest SFI Practitioner Roundup , written by SFI Prof. Ines Chaieb and Rajna Gibson Brandon, and learn what might segment and integrate sovereign bond markets, what the drivers of sovereign bond markets’ integration are, and why all of this matters.