RT Journal Article
SR Electronic
T1 Sovereign Securitization in Emerging Markets
JF The Journal of Structured Finance
FD Institutional Investor Journals
SP 68
OP 79
DO 10.3905/jsf.2006.661448
VO 12
IS 3
A1 Andreas A. Jobst
YR 2006
UL https://pm-research.com/content/12/3/68.abstract
AB Over many years, securitization has proven to be an expedient and highly flexible refinancing tool for corporations and public-sector entities that seek a more accurate capital-market based valuation of asset performance. After successful securitization by public-sector entities in advanced countries, sovereigns in emerging economies are also becoming adept at securitization as an efficient means of asset-liability management. This article critically surveys the recent developments of sovereign securitization in emerging markets and informs a more specific debate about the attendant infrastructural, legal, and regulatory challenges. Amid higher risk premia in a changing interest rate cycle, the current trend of greater investor differentiation in emerging markets creates a benign environment for sovereign securitization to accommodate continued demand for highly rated debt by institutional investors.TOPICS: Other real assets, emerging markets, financial crises and financial market history