Before the crisis, increased integration of global financial markets had led to a situation where OECD issuance policies and procedures were broadly similar with a high degree of transparency and predictability. However, tougher issuance conditions related to the surge in government borrowing needs are the reasons why existing issuance arrangements and procedures have not always been working as efficiently as before the crisis. The crisis also had an impact on the use of indicators or guidelines relating to the key risks of the maturity structure of issuance or outstanding debt. These considerations, in turn, have put the spotlight on the adequacy of existing issuance policies, procedures and portfolio management strategies. The review in this paper shows that in response to the crisis, DMOs have implemented changes in existing issuance procedures and policies that may have led to a somewhat greater diversity of primary market arrangements and portfolio management procedures.
Sections II and III provide an overview and update of issuance procedures in the OECD area based on a recent OECD survey. It is explained that, prior to the crisis, an increasingly integrated global financial landscape had encouraged the use of broadly similar issuance procedures and policies. Section IV shows how the explosion in borrowing needs has worsened the issuance environment and tested heavily the performance of existing issuance procedures. Tougher issuance conditions, in turn, have led to changes in issuance procedures (section V). Changes in portfolio management strategies and procedures are discussed in section VI. Section VII discusses the need to review primary dealer arrangements, while the final section concludes