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Environmental, Social and Governance (ESG) performance and sovereign bond spreads: an empirical analysis of OECD countries

This presentation surveys the determinants of sovereign bond spreads (SBS), starting from the vast literature on the relationships between SBS and macroeconomic performance. Quantitative factors focus mainly on fiscal accounts and fiscal space (Ardagna et al. 2007, Attinasi et al. 2009, Baldacci& Kumar 2010, Aizenman & Hutchinson 2013, Beirne & Fratscher 2012, Ghosh et al. 2013) and on public deficits as signals of higher risk (default, monetization driven depreciation, inflation) and of increases in SBS.