Abstract
Over many years, securitization has proven to be an expedient and highly flexible refinancing tool for corporations and public-sector entities that seek a more accurate capital-market based valuation of asset performance. After successful securitization by public-sector entities in advanced countries, sovereigns in emerging economies are also becoming adept at securitization as an efficient means of asset-liability management. This article critically surveys the recent developments of sovereign securitization in emerging markets and informs a more specific debate about the attendant infrastructural, legal, and regulatory challenges. Amid higher risk premia in a changing interest rate cycle, the current trend of greater investor differentiation in emerging markets creates a benign environment for sovereign securitization to accommodate continued demand for highly rated debt by institutional investors.
- © 2006 Pageant Media Ltd
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