Financial markets

Sovereign debt and financial stability


In-depth analysis from the OECD addresses the financial market dimension of sovereign debt challenges to assist policymakers in designing, adopting, and implementing appropriate policies.


Business models of banks, leverage and the distance-to-default, October 2012
This study models the distance-to-default of a large sample of banks with the aim of shedding light on policy and regulatory issues.


, 2 February 2012
Article by Adrian-Blundell Wignall published in Bloomberg Brief: Economics Europe.


Solving the Financial and Sovereign Debt Crisis in Europe, February 2012
This paper examines the policies that have been proposed to solve the financial and sovereign debt crisis in Europe against the backdrop of the real underlying problems.


Banking on a crisis and on its resolution, July 2011
The recent crisis has left a hole in the public finances of many countries. Yet, with the right preparation, governments may have been better placed to fund that gap.


Guarantee arrangements for financial promises: How widely should the safety net be cast?, June 2011
Guarantees have become the preferred policy instrument for addressing financial stability, consumer protection and credit allocation concerns. The report argues that, even where arrangements are private, expectations of implicit government support may exist and be difficult to counter.


A market perspective on the European sovereign debt and banking crisis, February 2011
Europe has been beset by an interrelated banking crisis and sovereign debt crisis. This paper explores these issues from the perspective of financial markets.


Sovereign debt challenges for banking systems and bond markets, December 2010
This report summarises discussions from a roundtable which brought together policy makers and financial services experts from the private sector to discuss issues related to sovereign risk challenges for banking systems and bond markets.


The EU Stress Test and Sovereign Debt Exposures, August 2010
This working paper comments on market concerns about banking sector exposure to sovereign debt risk during and beyond the period of the stress test.


Managing sovereign debt

Governments who borrow to manage their economies and fund investment must have strong institutions, processes and controls to manage the debts they incur. Poorly managed borrowing can quickly destablise an economy. The OECD provides a practical, hands-on policy forum for debt managers to help them minimise risks and design sound strategies.


OECD Sovereign Borrowing Outlook 2023
Published regularly, these reports provide updates of trends and developments associated with sovereign borrowing requirements and debt levels from the perspective of debt managers.


The future of debt markets, December 2011
This summary of discussions from the 2011 OECD-World Bank-IMF Global Bond Market Forum addresses challenges for sovereign issuers in assuring durable market access, the outlook for securitisation and covered bond markets and the future role of large bond investors.


A public debt management perspective on proposals for restrictions on short selling of sovereign debt, February 2011 
New restrictions on the short selling of sovereign debt have been proposed in response to major threats to financial market stability and market confidence. Debt managers voice concerns that the proposed changes could push their borrowing costs up.


Debt Markets: Policy Challenges in the Post-Crisis Landscape, September 2010
The 11th OECD-WBG-IMF Global Bond Market Forum focused on the challenge of measuring sovereign risk, the need for more reliable indicators of sovereign risk to help make appropriate investment decisions and how difficult circumstances have forced sovereign issuers to modify their borrowing strategies.



Sovereign Borrowing Outlook

Cyprus: Further compressing the coiled spring - Adrian Blundell-Wignall blogs about the Cyprus crisis, 21 March 2013

Financial-market complexity shouldn't lead to crisis. There is a better, simpler way: Split the banks

Angel Gurría in the Wall St Journal, 7 November 2012. Based on research in this study.

Analysis from financial market expert, Adrian Blundell-Wignall

Patrick Love blogs about sovereign debt in 17th century France




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