Panama - Average Long-term Government Bond

The BIS compiles the following three sets of quarterly statistics on securities markets: international debt securities, international equities, and domestic debt securities.

The main purpose of the three sets of statistics is to complement the quarterly international banking statistics so as to provide more comprehensive monitoring of international financial market activity. Analytical emphasis is placed on the stocks of securities outstanding, as well as new issues net of repayments. These data are broken down according to criteria similar to those applied to the banking statistics. However, in contrast to the international banking statistics only the borrower side of securities issues is covered. No detailed information is available on the actual ownership of these securities. The statistics are collected in particular for the following reasons:

• to assess the relative use of capital markets as opposed to banks in financial intermediation;
• to monitor the issuance in international markets by residents or nationals of different countries; and
• combined with pricing data, to assess supply and demand factors in asset markets and potential financial strains.

1. International debt securities

The statistics on international debt securities cover long-term bonds, notes and short-term money market instruments issued in international markets. The data are derived from various market sources: Dealogic (Bondware), Thomson Financial Securities Data (Platinum), ISMA (International Securities Market Association) and the Bank of England (for data before 1996) in the case of bonds, and Euroclear in the case of notes and short-term money market instruments. The added value of the BIS consists of integrating the information received from different data providers through a process of data reconciliation. Duplicates are identified and removed, mistakes are corrected and consistent classification of issuers is ensured across the different data sources.

The BIS data on international debt securities distinguish between the following basic types of information:

• Announced issues: the volume of new announcements of securities offered in the market.
• Completed issues: the volume of new securities actually placed in the market.
• Redemptions: both scheduled repayments and early redemptions of outstanding securities.
• Net new issues: the difference between completed issues and redemptions in a given period.
• Amounts outstanding: the gross value of securities not yet repaid at the end of a given reporting period.

Data on amounts outstanding are provided in current US dollar terms. Announced and completed new issues of international bonds in non-dollar currencies are converted into US dollar amounts at the exchange rate prevailing at the time of announcement. Announced and completed issues of international notes and money market instruments in non-dollar currencies as well as redemptions are converted into US dollar amounts using the respective quarterly average dollar exchange rate. Because of valuation effects related to exchange rate movements there is a difference between changes in the stocks of securities outstanding valued at current exchange rates and net new issues.

2. International equities

The statistics on international equities cover information on announced new equity issues by international syndicates in the international markets. The three main types of placement are: (i) offerings of common or preferred equity in the international market; (ii) issues targeted at particular foreign markets; and (iii) registered stocks traded on foreign markets as domestic instruments, such as American depositary receipts (ADRs). As with international debt securities, global issues that involve a combination of domestic and international tranches are considered in total as international issues. The international equities statistics are derived from market sources (Dealogic) and, as in the case of the international debt securities statistics, the BIS performs quality checks and ensures the consistency of the data.

3. Domestic debt securities

The domestic debt securities statistics cover data on longterm bonds and notes, treasury bills, commercial paper and other short-term notes issued in the domestic markets of currently about 40 countries (OECD members plus selected emerging market countries). The data are derived from various national sources, such as central banks, national statistical offices, securities registers etc.

In contrast to the international securities statistics, the domestic securities statistics cover only aggregated information on amounts outstanding and net new issues of securities. Currently, little or no detailed information is available on individual domestic securities issues and their characteristics.

Domestic debt securities are defined as those that have been issued by residents in domestic currency (with a few exceptions) and targeted at resident investors. The BIS endeavours to eliminate overlaps between its international and domestic securities databases as far as possible. This work mainly involves comparisons of detailed aggregated information; however, with regard to a few countries the work is carried out at the individual security level.

Data for the most recent period are provisional, and the last three quarters are updated with each release.