Enhancing the Creditworthiness of Municipal Bonds : Innovations from Mexico

In 2001-03 the municipal bond market in Mexico was among the most active in the developing world. Government officials had found a way to dramatically enhance the creditworthiness of local government debt without using sovereign guarantees. The tec...

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Main Authors:	Leigland, James, Mandri-Perrott, Cledan
Format:	Brief
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCOUNTABILITY ADEQUATE ASSURANCES AFFORDABLE INTEREST RATES BALANCE SHEET BALANCE SHEET DEBT BANK LENDING BOND ISSUANCES BOND ISSUES BOND SALES BONDHOLDERS BORROWER BORROWINGS CAPITAL MARKETS CAPITALIZATION CAR LOANS CASE OF DEFAULT CASH FLOWS CENTRAL GOVERNMENTS COLLATERAL COMMERCIAL BANKS CONTINGENT LIABILITY CREDIT ENHANCEMENTS CREDIT RATING CREDIT RATING AGENCIES CREDIT RATINGS CREDIT STANDING CREDIT STRENGTH CREDITORS CREDITWORTHINESS CURRENCY DEBT ISSUANCE DEBT OBLIGATIONS DEBT REPAYMENT DEBT REPAYMENTS DEBT SECURITIES DEBT SERVICE DEBT SERVICE PAYMENT DEBT SERVICE PAYMENTS DEBTS DECENTRALIZATION DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT BANK ECONOMIC GROWTH EMERGING MARKET EMERGING MARKET DEBT EXISTING ASSETS FACE VALUE FINANCES FINANCIAL ADVISORS FINANCIAL AUTONOMY FINANCIAL CRISIS FINANCIAL HEALTH FINANCINGS FUTURE DEBT GENERAL OBLIGATION GENERAL OBLIGATION BORROWING GENERAL OBLIGATIONS GOVERNMENT DEBT GOVERNMENT EXPENDITURE GOVERNMENT REVENUE HOME MORTGAGES IMPLICIT GUARANTEE IMPLICIT GUARANTEES INFRASTRUCTURE BONDS INTEREST RATES INTERGOVERNMENTAL TRANSFERS INTERNAL CREDIT ENHANCEMENTS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL FINANCE INTERNATIONAL SETTLEMENT LENDERS LOAN LOAN AGREEMENTS LOAN SIZE LOCAL ADMINISTRATION LOCAL GOVERNMENT LOCAL GOVERNMENT BORROWER LOCAL GOVERNMENT BORROWERS LOCAL GOVERNMENT DEBT LOCAL GOVERNMENT REVENUE LOCAL GOVERNMENTS LOW INTEREST RATES MONOPOLY MORAL HAZARD MUNICIPAL MUNICIPAL BOND MUNICIPAL BOND ISSUANCE MUNICIPAL BOND ISSUES MUNICIPAL BOND MARKET MUNICIPAL BONDS MUNICIPAL BORROWERS MUNICIPAL BORROWING MUNICIPAL BUDGETS MUNICIPAL DEBT MUNICIPAL GOVERNMENTS MUNICIPALITIES OUTSTANDING DEBT PAYMENT MECHANISMS PENSION PENSION FUND PENSION FUNDS PRIVATE FINANCIAL INSTITUTIONS PRIVATE INFRASTRUCTURE PUBLIC FINANCE PUBLIC-PRIVATE PARTNERSHIP PUBLIC-PRIVATE PARTNERSHIPS RECEIVABLES RESERVE RESERVE ACCOUNTS REVENUE BONDS REVENUE INTERCEPTS RISK OF DEFAULT SECURITIES SOVEREIGN DEBT SOVEREIGN GUARANTEES SUBNATIONAL FINANCE SUSTAINABLE DEVELOPMENT TAX TAX REVENUES TECHNICAL ASSISTANCE TELEPHONE SERVICE TRADABLE SECURITIES TRANSACTION TRANSACTION COSTS TURNOVER URBAN DEVELOPMENT
Online Access:	http://documents.worldbank.org/curated/en/2008/08/9988449/enhancing-creditworthiness-municipal-bonds-innovations-mexico http://hdl.handle.net/10986/10598

id	okr-10986-10598
recordtype	oai_dc
spelling	okr-10986-105982021-04-23T14:02:51Z Enhancing the Creditworthiness of Municipal Bonds : Innovations from Mexico Leigland, James Mandri-Perrott, Cledan ACCOUNTABILITY ADEQUATE ASSURANCES AFFORDABLE INTEREST RATES BALANCE SHEET BALANCE SHEET DEBT BANK LENDING BOND ISSUANCES BOND ISSUES BOND SALES BONDHOLDERS BORROWER BORROWINGS CAPITAL MARKETS CAPITALIZATION CAR LOANS CASE OF DEFAULT CASH FLOWS CENTRAL GOVERNMENTS COLLATERAL COMMERCIAL BANKS CONTINGENT LIABILITY CREDIT ENHANCEMENTS CREDIT RATING CREDIT RATING AGENCIES CREDIT RATINGS CREDIT STANDING CREDIT STRENGTH CREDITORS CREDITWORTHINESS CURRENCY DEBT ISSUANCE DEBT OBLIGATIONS DEBT REPAYMENT DEBT REPAYMENTS DEBT SECURITIES DEBT SERVICE DEBT SERVICE PAYMENT DEBT SERVICE PAYMENTS DEBTS DECENTRALIZATION DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT BANK ECONOMIC GROWTH EMERGING MARKET EMERGING MARKET DEBT EXISTING ASSETS FACE VALUE FINANCES FINANCIAL ADVISORS FINANCIAL AUTONOMY FINANCIAL CRISIS FINANCIAL HEALTH FINANCINGS FUTURE DEBT GENERAL OBLIGATION GENERAL OBLIGATION BORROWING GENERAL OBLIGATIONS GOVERNMENT DEBT GOVERNMENT EXPENDITURE GOVERNMENT REVENUE HOME MORTGAGES IMPLICIT GUARANTEE IMPLICIT GUARANTEES INFRASTRUCTURE BONDS INTEREST RATES INTERGOVERNMENTAL TRANSFERS INTERNAL CREDIT ENHANCEMENTS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL FINANCE INTERNATIONAL SETTLEMENT LENDERS LOAN LOAN AGREEMENTS LOAN SIZE LOCAL ADMINISTRATION LOCAL GOVERNMENT LOCAL GOVERNMENT BORROWER LOCAL GOVERNMENT BORROWERS LOCAL GOVERNMENT DEBT LOCAL GOVERNMENT REVENUE LOCAL GOVERNMENTS LOW INTEREST RATES MONOPOLY MORAL HAZARD MUNICIPAL MUNICIPAL BOND MUNICIPAL BOND ISSUANCE MUNICIPAL BOND ISSUES MUNICIPAL BOND MARKET MUNICIPAL BONDS MUNICIPAL BORROWERS MUNICIPAL BORROWING MUNICIPAL BUDGETS MUNICIPAL DEBT MUNICIPAL GOVERNMENTS MUNICIPALITIES OUTSTANDING DEBT PAYMENT MECHANISMS PENSION PENSION FUND PENSION FUNDS PRIVATE FINANCIAL INSTITUTIONS PRIVATE INFRASTRUCTURE PUBLIC FINANCE PUBLIC-PRIVATE PARTNERSHIP PUBLIC-PRIVATE PARTNERSHIPS RECEIVABLES RESERVE RESERVE ACCOUNTS REVENUE BONDS REVENUE INTERCEPTS RISK OF DEFAULT SECURITIES SOVEREIGN DEBT SOVEREIGN GUARANTEES SUBNATIONAL FINANCE SUSTAINABLE DEVELOPMENT TAX TAX REVENUES TECHNICAL ASSISTANCE TELEPHONE SERVICE TRADABLE SECURITIES TRANSACTION TRANSACTION COSTS TURNOVER URBAN DEVELOPMENT In 2001-03 the municipal bond market in Mexico was among the most active in the developing world. Government officials had found a way to dramatically enhance the creditworthiness of local government debt without using sovereign guarantees. The technique, adapted in part from private sector 'future flow' financing deals, enabled a state or local government to earn significantly higher credit ratings for bond issues than for its normal balance sheet debt. Many other developing countries have turned to Mexico as a source of innovation that may have application in their own markets. 2012-08-13T12:15:49Z 2012-08-13T12:15:49Z 2008-08 http://documents.worldbank.org/curated/en/2008/08/9988449/enhancing-creditworthiness-municipal-bonds-innovations-mexico http://hdl.handle.net/10986/10598 English Gridlines; No. 39 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research Latin America & Caribbean Mexico
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ACCOUNTABILITY ADEQUATE ASSURANCES AFFORDABLE INTEREST RATES BALANCE SHEET BALANCE SHEET DEBT BANK LENDING BOND ISSUANCES BOND ISSUES BOND SALES BONDHOLDERS BORROWER BORROWINGS CAPITAL MARKETS CAPITALIZATION CAR LOANS CASE OF DEFAULT CASH FLOWS CENTRAL GOVERNMENTS COLLATERAL COMMERCIAL BANKS CONTINGENT LIABILITY CREDIT ENHANCEMENTS CREDIT RATING CREDIT RATING AGENCIES CREDIT RATINGS CREDIT STANDING CREDIT STRENGTH CREDITORS CREDITWORTHINESS CURRENCY DEBT ISSUANCE DEBT OBLIGATIONS DEBT REPAYMENT DEBT REPAYMENTS DEBT SECURITIES DEBT SERVICE DEBT SERVICE PAYMENT DEBT SERVICE PAYMENTS DEBTS DECENTRALIZATION DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT BANK ECONOMIC GROWTH EMERGING MARKET EMERGING MARKET DEBT EXISTING ASSETS FACE VALUE FINANCES FINANCIAL ADVISORS FINANCIAL AUTONOMY FINANCIAL CRISIS FINANCIAL HEALTH FINANCINGS FUTURE DEBT GENERAL OBLIGATION GENERAL OBLIGATION BORROWING GENERAL OBLIGATIONS GOVERNMENT DEBT GOVERNMENT EXPENDITURE GOVERNMENT REVENUE HOME MORTGAGES IMPLICIT GUARANTEE IMPLICIT GUARANTEES INFRASTRUCTURE BONDS INTEREST RATES INTERGOVERNMENTAL TRANSFERS INTERNAL CREDIT ENHANCEMENTS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL FINANCE INTERNATIONAL SETTLEMENT LENDERS LOAN LOAN AGREEMENTS LOAN SIZE LOCAL ADMINISTRATION LOCAL GOVERNMENT LOCAL GOVERNMENT BORROWER LOCAL GOVERNMENT BORROWERS LOCAL GOVERNMENT DEBT LOCAL GOVERNMENT REVENUE LOCAL GOVERNMENTS LOW INTEREST RATES MONOPOLY MORAL HAZARD MUNICIPAL MUNICIPAL BOND MUNICIPAL BOND ISSUANCE MUNICIPAL BOND ISSUES MUNICIPAL BOND MARKET MUNICIPAL BONDS MUNICIPAL BORROWERS MUNICIPAL BORROWING MUNICIPAL BUDGETS MUNICIPAL DEBT MUNICIPAL GOVERNMENTS MUNICIPALITIES OUTSTANDING DEBT PAYMENT MECHANISMS PENSION PENSION FUND PENSION FUNDS PRIVATE FINANCIAL INSTITUTIONS PRIVATE INFRASTRUCTURE PUBLIC FINANCE PUBLIC-PRIVATE PARTNERSHIP PUBLIC-PRIVATE PARTNERSHIPS RECEIVABLES RESERVE RESERVE ACCOUNTS REVENUE BONDS REVENUE INTERCEPTS RISK OF DEFAULT SECURITIES SOVEREIGN DEBT SOVEREIGN GUARANTEES SUBNATIONAL FINANCE SUSTAINABLE DEVELOPMENT TAX TAX REVENUES TECHNICAL ASSISTANCE TELEPHONE SERVICE TRADABLE SECURITIES TRANSACTION TRANSACTION COSTS TURNOVER URBAN DEVELOPMENT
spellingShingle	ACCOUNTABILITY ADEQUATE ASSURANCES AFFORDABLE INTEREST RATES BALANCE SHEET BALANCE SHEET DEBT BANK LENDING BOND ISSUANCES BOND ISSUES BOND SALES BONDHOLDERS BORROWER BORROWINGS CAPITAL MARKETS CAPITALIZATION CAR LOANS CASE OF DEFAULT CASH FLOWS CENTRAL GOVERNMENTS COLLATERAL COMMERCIAL BANKS CONTINGENT LIABILITY CREDIT ENHANCEMENTS CREDIT RATING CREDIT RATING AGENCIES CREDIT RATINGS CREDIT STANDING CREDIT STRENGTH CREDITORS CREDITWORTHINESS CURRENCY DEBT ISSUANCE DEBT OBLIGATIONS DEBT REPAYMENT DEBT REPAYMENTS DEBT SECURITIES DEBT SERVICE DEBT SERVICE PAYMENT DEBT SERVICE PAYMENTS DEBTS DECENTRALIZATION DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT BANK ECONOMIC GROWTH EMERGING MARKET EMERGING MARKET DEBT EXISTING ASSETS FACE VALUE FINANCES FINANCIAL ADVISORS FINANCIAL AUTONOMY FINANCIAL CRISIS FINANCIAL HEALTH FINANCINGS FUTURE DEBT GENERAL OBLIGATION GENERAL OBLIGATION BORROWING GENERAL OBLIGATIONS GOVERNMENT DEBT GOVERNMENT EXPENDITURE GOVERNMENT REVENUE HOME MORTGAGES IMPLICIT GUARANTEE IMPLICIT GUARANTEES INFRASTRUCTURE BONDS INTEREST RATES INTERGOVERNMENTAL TRANSFERS INTERNAL CREDIT ENHANCEMENTS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL FINANCE INTERNATIONAL SETTLEMENT LENDERS LOAN LOAN AGREEMENTS LOAN SIZE LOCAL ADMINISTRATION LOCAL GOVERNMENT LOCAL GOVERNMENT BORROWER LOCAL GOVERNMENT BORROWERS LOCAL GOVERNMENT DEBT LOCAL GOVERNMENT REVENUE LOCAL GOVERNMENTS LOW INTEREST RATES MONOPOLY MORAL HAZARD MUNICIPAL MUNICIPAL BOND MUNICIPAL BOND ISSUANCE MUNICIPAL BOND ISSUES MUNICIPAL BOND MARKET MUNICIPAL BONDS MUNICIPAL BORROWERS MUNICIPAL BORROWING MUNICIPAL BUDGETS MUNICIPAL DEBT MUNICIPAL GOVERNMENTS MUNICIPALITIES OUTSTANDING DEBT PAYMENT MECHANISMS PENSION PENSION FUND PENSION FUNDS PRIVATE FINANCIAL INSTITUTIONS PRIVATE INFRASTRUCTURE PUBLIC FINANCE PUBLIC-PRIVATE PARTNERSHIP PUBLIC-PRIVATE PARTNERSHIPS RECEIVABLES RESERVE RESERVE ACCOUNTS REVENUE BONDS REVENUE INTERCEPTS RISK OF DEFAULT SECURITIES SOVEREIGN DEBT SOVEREIGN GUARANTEES SUBNATIONAL FINANCE SUSTAINABLE DEVELOPMENT TAX TAX REVENUES TECHNICAL ASSISTANCE TELEPHONE SERVICE TRADABLE SECURITIES TRANSACTION TRANSACTION COSTS TURNOVER URBAN DEVELOPMENT Leigland, James Mandri-Perrott, Cledan Enhancing the Creditworthiness of Municipal Bonds : Innovations from Mexico
geographic_facet	Latin America & Caribbean Mexico
relation	Gridlines; No. 39
description	In 2001-03 the municipal bond market in Mexico was among the most active in the developing world. Government officials had found a way to dramatically enhance the creditworthiness of local government debt without using sovereign guarantees. The technique, adapted in part from private sector 'future flow' financing deals, enabled a state or local government to earn significantly higher credit ratings for bond issues than for its normal balance sheet debt. Many other developing countries have turned to Mexico as a source of innovation that may have application in their own markets.
format	Publications & Research :: Brief
author	Leigland, James Mandri-Perrott, Cledan
author_facet	Leigland, James Mandri-Perrott, Cledan
author_sort	Leigland, James
title	Enhancing the Creditworthiness of Municipal Bonds : Innovations from Mexico
title_short	Enhancing the Creditworthiness of Municipal Bonds : Innovations from Mexico
title_full	Enhancing the Creditworthiness of Municipal Bonds : Innovations from Mexico
title_fullStr	Enhancing the Creditworthiness of Municipal Bonds : Innovations from Mexico
title_full_unstemmed	Enhancing the Creditworthiness of Municipal Bonds : Innovations from Mexico
title_sort	enhancing the creditworthiness of municipal bonds : innovations from mexico
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2008/08/9988449/enhancing-creditworthiness-municipal-bonds-innovations-mexico http://hdl.handle.net/10986/10598
_version_	1764413685265072128

Enhancing the Creditworthiness of Municipal Bonds : Innovations from Mexico

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