Foreword; Acknowledgments; About the Editors; Abbreviations; 1 Innovative Financing for Development: Overview; Figure 1.1 Value of Bonded Debt in All Developing Countries, 1970-2005; Figure 1.2 Debt- Trading Volume of Developing Countries, 1985-2007; Table 1.1 Hierarchy in Future- Flow- Backed Transactions; Figure 1.3 Launch Spreads Decline with an Increase in Sovereign Rating; Table 1.2 Innovations Classified by Financial Intermediation Function; 2 Future-Flow Securitization for Development Finance; Figure 2.1 Stylized Structure of a Typical Future-Flow Securitization
Figure 2.4 Rises in Remittances Following National DisastersTable 2.5 Remittance- and DPR-Backed Transaction Ratings; Figure 2.5 Recovery of Remittances after Tsunamis; Table 2.6 Potential for Remittance-Backed Securitization; Figure 2A.1 Credit Card Receivables Structure; Figure 2A.2 Crude Oil Receivables Structure; 3 Development Finance via Diaspora Bonds; Figure 3.1 Total Bond Sales by Israel, 1996-2007; Figure 3.2 Israeli Bond Sales by Type, 1951-2007; Table 3.1 Bond Offerings by Israel; Figure 3.3 Discount on Israeli DCI Bonds Compared with U.S. Treasuries, 1953-2007
Figure 5.4 Evolution of Sovereign Credit Ratings in Selected Countries, 1986-2006Figure 5.5 Subsovereign Foreign Currency Debt Issues in Developing Countries Rated by S & P, 1993-2005; Table 5.1 Literature on Model-Based Determinants of Ratings; Table 5.2 Ratings-Conversion from Letter to Numeric Scale; Table 5.3 Regression Results Using 2005 Explanatory Variables for Ratings in December 2006; Table 5.4 Regression Results Using Dated Explanatory Variables for Latest Ratings as of December 2006; Figure 5.6 Comparison of Actual S & P Ratings Established in 2006 with Predicted Ratings
Table 2.1 Hierarchy in Future-Flow-Backed TransactionsBox 2.1 Pakistan Telecommunications Company Limited (PTCL)-No Default on Asset-Backed Papers Even in the Face of Selective Default on Sovereign Debt; Figure 2.2 Asset-Backed Securitization Issuance, 1992-2006; Figure 2.3 Major Issuers, 1992-2006; Table 2.2 Future-Flow Securitization Worldwide, by Asset, 1992-2006; Table 2.3 Securitization Potential of Regions and Sectors, 2003-06; Table 2.4 Most Likely Issuers' Securitization Potential, 2003-06; Box 2.2 Banco do Brasil's (BdB) Nikkei Remittance Trust Securitization
Table 3.2 Diaspora Bonds Issued by IndiaTable 3.3 Comparison of Diaspora Bonds Issued by Israel and India; Table 3.4 Countries with Large Diasporas in the High-Income OECD Countries; 4 GDP-Indexed Bonds: Making It Happen; 5 Shadow Sovereign Ratings for Unrated Developing Countries; Figure 5.1 Composition of Private Capital Flows in Rated and Unrated Countries, 2005; Box 5.1 Sovereign Spreads Are Inversely Related to Sovereign Ratings; Figure 5.2 Evolution of Sovereign Credit Ratings, 1980-2006; Figure 5.3 Correlation of Sovereign Ratings by Different Agencies
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This book argues that poor countries need additional, cross-border capital channeled to the private sector for employment generation, growth, and poverty reduction. For that, innovative financing mechanisms are necessary. The volume brings together various market-based innovative methods of raising development finance including securitization of future flow receivables, diaspora bonds, and the role of shadow sovereign ratings in facilitating access to international capital markets.