Emerging Markets Borrow Short Term

The authors argue that one reason why emerging economies borrow short term is that it is cheaper than borrowing long term. This is especially the case during crises, as during these episodes the relative cost of long-term borrowing increases. They have constructed a unique database of sovereign bond prices, returns, and issuances at different maturities for 11 emerging economies from 1990 to 2009 and present a set of new stylized facts. On average, these countries pay a higher risk premium on long-term than on short-term bonds. During crises, the difference between the two risk premia increases and issuance shifts towards shorter maturities.

Data and Resources

Field Value
Groups
  • Affordable and Clean Energy
  • AmeriGEOSS
  • Global Provider
  • Sustainable Development Goals
Tags
  • AmeriGEO
  • AmeriGEOSS
  • Energy
  • GEO
  • GEOSS
  • Global
  • SDG
  • SDG7
  • World Bank
isopen False
license_id CC-BY-4.0
license_title CC-BY-4.0
metadata_created 2025-09-18T20:31:03.376560
metadata_modified 2025-09-18T20:31:03.376567
notes <p>The authors argue that one reason why emerging economies borrow short term is that it is cheaper than borrowing long term. This is especially the case during crises, as during these episodes the relative cost of long-term borrowing increases. They have constructed a unique database of sovereign bond prices, returns, and issuances at different maturities for 11 emerging economies from 1990 to 2009 and present a set of new stylized facts. On average, these countries pay a higher risk premium on long-term than on short-term bonds. During crises, the difference between the two risk premia increases and issuance shifts towards shorter maturities.</p>
num_resources 2
num_tags 9
title Emerging Markets Borrow Short Term