Author : Laura Jaramillo
Release : 2011-03-01
Genre : Business & Economics
Kind :
Book Rating : 987/5 ( reviews)

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Sovereign Credit Ratings and Spreads in Emerging Markets - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Sovereign Credit Ratings and Spreads in Emerging Markets write by Laura Jaramillo. This book was released on 2011-03-01. Sovereign Credit Ratings and Spreads in Emerging Markets available in PDF, EPUB and Kindle. Sovereign investment grade status is often associated with lower spreads in international markets. Using a panel framework for 35 emerging markets between 1997 and 2010, thispaper finds that investment grade status reduces spreads by 36 percent, above and beyond what is implied by macroeconomic fundamentals. This compares to a 5-10 percent reduction in spreads following upgrades within the investment grade asset class, and no impact formovements within the speculative grade asset class, ceteris paribus. While global financial conditions play a central role in determining spreads, market sentiment improves with lower external public debt to GDP levels and higher domestic growth rates.