Journal of African Trade

Volume 2, Issue 1-2, December 2015, Pages 87 - 109

Sovereign bond issues: Do African countries pay more to borrow?☆

Authors
Michael Olabisia, b, *, molabisi@umich.edu, Howard Steinb, howstein@umich.edu
aGraziadio School of Business
bUniversity of Michigan, United States
*Corresponding author.
Corresponding Author
Michael Olabisimolabisi@umich.edu
Received 4 December 2014, Revised 30 July 2015, Accepted 10 August 2015, Available Online 18 November 2015.
DOI
10.1016/j.joat.2015.08.003How to use a DOI?
Keywords
Sub-Saharan Africa; Sovereign debt markets; Development finance
Abstract

There is a new wave of external borrowing by African governments on private sovereign bond markets. The findings in this paper indicate that African economies pay higher-than-normal coupon rates on these markets; observed risk measures like agency ratings and debt to GDP ratios do not explain the deviation from the norm. We also find that countries in better financial standing tend to self-select into the private markets, such that their risk profiles cannot explain the high coupon rates. Further research steps and policy implications are discussed.

Copyright
© 2015 Afreximbank. Production and hosting by Elsevier B.V. All rights reserved.
Open Access
This is an open access article under the CC BY-NC license (http://creativecommons.org/licences/by-nc/4.0/).

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Journal
Journal of African Trade
Volume-Issue
2 - 1-2
Pages
87 - 109
Publication Date
2015/11/18
ISSN (Online)
2214-8523
ISSN (Print)
2214-8515
DOI
10.1016/j.joat.2015.08.003How to use a DOI?
Copyright
© 2015 Afreximbank. Production and hosting by Elsevier B.V. All rights reserved.
Open Access
This is an open access article under the CC BY-NC license (http://creativecommons.org/licences/by-nc/4.0/).

Cite this article

TY  - JOUR
AU  - Michael Olabisi
AU  - Howard Stein
PY  - 2015
DA  - 2015/11/18
TI  - Sovereign bond issues: Do African countries pay more to borrow?☆
JO  - Journal of African Trade
SP  - 87
EP  - 109
VL  - 2
IS  - 1-2
SN  - 2214-8523
UR  - https://doi.org/10.1016/j.joat.2015.08.003
DO  - 10.1016/j.joat.2015.08.003
ID  - Olabisi2015
ER  -