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The End of Gatekeeping: Underwriters and the Quality of Sovereign Bond Markets, 1815-2007

In: NBER International Seminar on Macroeconomics 2009

  • Marc Flandreau
  • Juan H. Flores
  • Norbert Gaillard
  • Sebastián Nieto-Parra

We provide a comparison of salient organizational features of primary markets for foreign government debt over the very long run. We focus on output, quality control, information provision, competition, pricing, charging, and signaling. We find that the market setup experienced a radical transformation in the recent period, and we interpret this as resulting from the rise of liability insurance provided by rating agencies. Underwriters have given up their former role as gatekeepers of liquidity and certification agencies to become aggressive competitors in a new Speculative Grade market.

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This chapter was published in:
  • Lucrezia Reichlin & Kenneth D. West, 2010. "NBER International Seminar on Macroeconomics 2009," NBER Books, National Bureau of Economic Research, Inc, number reic09-1, August.
  • This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 11906.
    Handle: RePEc:nbr:nberch:11906
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