Geopolitical Risk and Non-Official Financing Sources: What Choices Have to Be Made?

What’s the calculus behind the choice of non-official external financing sources in Sub-Saharan Africa?

In this very comprehensive Working Paper from the IMF, the trade-offs between foreign and domestic currency-denominated debt are considered using data from emerging and developing economies.

The piece builds its models using our ICRG risk data as one of the ‘pull factors,’ and analyzes the main drivers of yields at issuance and bond spreads, along with the reliability of credit ratings and the potential existence of an “African risk premium”.

The findings suggest that global factors, such as the US dollar and interest rates, along with domestic characteristics, including governance and political risk, play an important role.

Have a look if time permits: (https://lnkd.in/eRwk-3zK

·      Appearing in over 1,000 published articles and book chapters
·      Over 7.5 million vetted geopolitical risk points covering over 40 years.
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