How Private Creditors Fared in Emerging Debt Markets, 1970-2000

We estimate ex post returns to emerging market debt by combining secondary-market prices with observed flows based on World Bank data. From 1970-2000, returns averaged 9 percent per annum, about the same as returns on a ten-year U.S. treasury bond. This reflects the combined effect of the 1980s debt...

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Bibliographic Details
Main Author: Zettelmeyer, Jeromin
Other Authors: Klingen, Christoph, Weder, Beatrice
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2004
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a How Private Creditors Fared in Emerging Debt Markets, 1970-2000  |c Jeromin Zettelmeyer, Beatrice Weder, Christoph Klingen 
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651 4 |a United States 
653 |a Economic & financial crises & disasters 
653 |a Institutional Investors 
653 |a Stock exchanges 
653 |a Stocks 
653 |a Pension Funds 
653 |a Finance 
653 |a Financial crises 
653 |a Financial institutions 
653 |a Financial Instruments 
653 |a Capital market 
653 |a Long-term Capital Movements 
653 |a General Financial Markets: General (includes Measurement and Data) 
653 |a International Lending and Debt Problems 
653 |a Non-bank Financial Institutions 
653 |a Financial markets 
653 |a Emerging and frontier financial markets 
653 |a Stock markets 
653 |a Investments: Stocks 
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653 |a Investment & securities 
653 |a Financial Risk Management 
653 |a Finance: General 
653 |a International Investment 
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520 |a We estimate ex post returns to emerging market debt by combining secondary-market prices with observed flows based on World Bank data. From 1970-2000, returns averaged 9 percent per annum, about the same as returns on a ten-year U.S. treasury bond. This reflects the combined effect of the 1980s debt crisis and much higher returns during 1989-2000. Annual returns since 1986 have been less volatile than emerging market equity returns but more volatile than returns on U.S. corporate or high-yield bonds. However, unlike returns on these bonds, emerging market debt returns do not seem significantly correlated with U.S. or world stock markets