04958oam 22012134 450 991016294400332120230808201451.01-4755-6898-31-4755-6900-9(CKB)3710000001045034(MiAaPQ)EBC4800307(IMF)WPIEA2016246(EXLCZ)99371000000104503420020129d2016 uf 0engurcnu||||||||rdacontentrdamediardacarrierDoes Gross or Net Debt Matter More for Emerging Market Spreads? /Metodij Hadzi-Vaskov, Luca RicciWashington, D.C. :International Monetary Fund,2016.1 online resource (38 pages) illustrationsIMF Working Papers1-4755-6310-8 Includes bibliographical references.Does gross or net debt matter for long-term sovereign spreads in emerging markets? The topic is important for undestanding the borrowing cost implications of public assetliability management decisions (e.g. using assets to lower debt). We investigate this question using data on emerging market economies (EMEs) over the period 1998–2014. We find that both gross debt and assets have a significant impact on long-term sovereign bond spreads in emerging markets, with effects roughly offsetting each other (coefficients of opposite sign and similar magnitude). Hence, net debt seems more appropriate than gross debt when evaluating the impact of indebtedness on spreads. The empirical results suggest that an increase in net debt by 10 percentage points of GDP implies an increase in the spread by 100–120 basis points, and the effect is larger during periods of domestic distress. The key results from this empirical study are quite robust to alternative specifications and subgroups of EMEs.IMF Working Papers; Working Paper ;No. 2016/246Debts, PublicDeveloping countriesDebts, PublicBanks and BankingimfFinance: GeneralimfInflationimfMoney and Monetary PolicyimfPublic FinanceimfInterest Rates: Determination, Term Structure, and EffectsimfInternational Financial MarketsimfDebtimfDebt ManagementimfSovereign DebtimfGeneral Financial Markets: General (includes Measurement and Data)imfMonetary PolicyimfPrice LevelimfDeflationimfMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralimfFinanceimfPublic finance & taxationimfBankingimfMacroeconomicsimfMonetary economicsimfEmerging and frontier financial marketsimfPublic debtimfInternational reservesimfCredit default swapimfFinancial marketsimfCentral banksimfPricesimfMoneyimfFinancial services industryimfDebts, PublicimfForeign exchange reservesimfCreditimfUnited StatesimfDebts, PublicDebts, Public.Banks and BankingFinance: GeneralInflationMoney and Monetary PolicyPublic FinanceInterest Rates: Determination, Term Structure, and EffectsInternational Financial MarketsDebtDebt ManagementSovereign DebtGeneral Financial Markets: General (includes Measurement and Data)Monetary PolicyPrice LevelDeflationMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralFinancePublic finance & taxationBankingMacroeconomicsMonetary economicsEmerging and frontier financial marketsPublic debtInternational reservesCredit default swapFinancial marketsCentral banksPricesMoneyFinancial services industryDebts, PublicForeign exchange reservesCredit336.3435091724Hadzi-Vaskov Metodij1378121Ricci Luca1449348DcWaIMFBOOK9910162944003321Does Gross or Net Debt Matter More for Emerging Market Spreads3649967UNINA