  We analyze the sovereign bond issuance data of eight major emerging markets
(EMs) - Brazil, China, India, Indonesia, Mexico, Russia, South Africa and
Turkey from 1970 to 2018. Our analysis suggests that (i) EM local currency
bonds tend to be smaller in size, shorter in maturity, or lower in coupon rate
than foreign currency bonds; (ii) EMs are more likely to issue local-currency
sovereign bonds if their currencies appreciated before the global financial
crisis of 2008 (GFC); (iii) inflation-targeting monetary policy increases the
likelihood of issuing local-currency debt before GFC but not after; and (iv)
EMs that offer higher sovereign yields are more likely to issue local-currency
bonds after GFC. Future data will allow us to test and identify structural
changes associated with the COVID-19 pandemic and its aftermath.
