Determinants of nonresident government debt ownership. Issue 2 (19th January 2017)

• Record Type: Journal Article
• Authors: Afonso, António; Silva, Jorge
• Is Part Of: Applied economics letters. Volume 24:Issue 2(2017)
• Page Start: 107
• Page End: 112
• Publication Date: 2017-01-19
• Subjects: Sovereign debt -- central bank -- financial markets -- monetary and financial institutions -- Portugal; C22 -- E44 -- F34 -- G15 -- H63; Economics -- Periodicals; Economics, Mathematical -- Periodicals; 330
• DOI: 10.1080/13504851.2016.1167818
• Languages: English
• ISSNs: 1350-4851

Abstract

ABSTRACT: We examine the determinants of nonresident government debt ownership, accounting for domestic and external factors and financial variables during the period 2000Q2–2014Q4, focussing on a small euro area open economy: Portugal. Our results show that better fiscal positions, higher systematic stress in Europe and higher shares of monetary and financial institutions (MFI) cross-border holdings of public debt, increase the share of nonresident held debt, and rising sovereign yields decrease that ratio.