Sovereign retail debt programmes and instruments

Abstract

Retail investors are an increasingly important source of funding for sovereign issuers due to a confluence of factors including higher interest rates, higher gross borrowing requirements and the withdrawal of central banks as large net buyers. This paper examines the key features of sovereign retail programmes and instruments currently offered by OECD member and partner countries. It assesses the costs and benefits to issuers, and analyses recent trends in retail demand for sovereign debt, based mainly on OECD survey findings. The analysis provides insights on different approaches that may help policy makers design and implement effective retail debt programmes and instruments.