OECD Sovereign Borrowing Outlook 2013

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Each year, the OECD circulates a survey on the borrowing needs of member countries. The responses are incorporated in the OECD Sovereign Borrowing Outlook to provide regular updates of trends and developments associated with sovereign borrowing requirements and debt levels from the perspective of public debt managers. The Outlook makes a policy distinction between funding strategy and borrowing requirements. The central government marketable gross borrowing needs, or requirements, are calculated on the basis of budget deficits and redemptions. The funding strategy entails decisions on how borrowing needs are going to be financed using different instruments (e.g. long-term, short-term, nominal, indexed, etc.) and distribution channels.

Accordingly, the OECD Sovereign Borrowing Outlook provides data and information on borrowing needs and funding policies for the OECD area and country groupings, including gross borrowing requirements, net borrowing requirements, central government marketable debt, funding strategies and instruments and distribution channels.



Structural changes in the investor base for government securities

The investor base for government securities has been undergoing important changes, some of them structural. Investment strategies and environments have been changing over the past several years, as global investors have adjusted to crisis related challenges and policies such as quantitative easing, changes in the relative attractiveness or riskiness of developed and emerging market assets, and greater emphasis on individual country risk instead of asset classes. New and demanding challenges were added since 2010 by the unfolding crisis in the Euro area. Moreover, regulatory changes, new or anticipated, with direct and indirect impacts on investment strategies are also having an influence on the investor base for government securities. OECD sovereign issuers attach a greater importance to Investor Relations and the Communication Strategy, citing a variety of reasons, ranging from the need to ensure demand as funding requirements increased and/or circumstances changed, to the need for diversification of the investor base.



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