The Changing Role of Global Financial Brands in the Underwriting of Foreign Government Debt (1815-2010)

Abstract

This paper covers the long-term evolution of the primary market for foreign government debt. We discuss the role of financial intermediaries as underwriters and distributors of securities, providers of information, and lending of last resort services since the early 19th century, and the evolution of this role. We underscore the role of the prestige of global financial brands in sustaining early foreign debt markets and its weakening in the modern era.Sovereign debt, primary bond market, reputation, underwriting, certification, information asymmetries, investment banking, credit rating agencies, IMF