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

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Price:  $15.00

Author/Editor: Jeronimo Zettelmeyer, Beatrice Weder, Christoph Klingen
Release Date: © January, 2004
ISBN : 978-1-45184-303-3
Stock #: WPIEA0132004
Stock Status: On back-order

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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.


Debt , Economic policy , Fiscal policy

More publications in this series: Working Papers

More publications by: Jeronimo Zettelmeyer ; Beatrice Weder ; Christoph Klingen