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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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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 -