This paper deploys a risk-based approach to analyse the development of the government bond market in Mexico. This paper determines that the development of a market for local-currency government bonds has allowed the Mexican government to significantly enhance its debt profile by reducing and rebalancing the risk factors that contributed to previous crises, containing the possibility of future crises and slashing its debt costs. While this process of bond market development requires the government to develop the institutions that support the market, other factors such as the size of the economy and global market conditions also shape the process.
The dissertation is available here:
This dissertation was awarded Distinction by LSE.