2. The Libor-OIS spread ( _LIBOR_ ) (Figure 17) is used as a control for risk perception in credit markets. This spread is a measure of inter-bank risk and liquidity in the money market and captures fear of bank insolvency. Higher spreads indicate low liquidity and an unwillingness of banks to lend to each other, and are typically associated with higher bond yields and a decrease in maturities.

3. The corporate credit spread ( _RISK_ ) (Figure 18) <mark>tracks the performance of U.S. Dollar denominated investment grade rated corporate debt that is publically issued in the U.S. domestic market. This options-adjusted spread is the difference between U.S. treasury bonds and corporate bonds with a BBB rating or higher.</mark> _<mark>RISK</mark>_ <mark>is an indicator of corporate sector health, where wider spreads are associated with deteriorating investor confidence</mark> and are expected to increase bond premiums and shorten the duration at which EMs can issue debt. Search-for-yield will exert a downward pressure on this spread. In unreported robustness regressions we use the high-yield corporate debt spread instead with qualitatively similar results.

4. The size of the Federal Reserve Balance Sheet ( _FED_ ) (Figure 19), calculated as the sum of mortgage- backed securities and U.S. treasuries, is used to gauge spillover effects from U.S. LSAPs.

Panel B in Appendix 2 provides average values of these global push factors around time of each individual bond issue by year.

In all our regressions, we also control for the United States 10-year Treasury yield ( _UST10Y_ ), which is generally considered a pricing benchmark and a proxy for global liquidity conditions as well. Falling U.S. long-term treasury yields are associated with an abundance of capital in the international market and an increased willingness to hold relatively riskier assets, such as emerging and developing market debt. Indeed, the empirical literature has found this global factor to be a key determinant of emerging market bond prices. Notably, an increase in U.S. treasury yields tends to increase emerging market bond yields and spreads while decreasing the probability of bond issuance (e.g. Eichengreen and Mody (1998a) and Eichengreen and Mody (1998b)).

Global push factors are all based on daily time series. To best estimate the global financial conditions that impacted bond issuance as well as investor confidence, we incorporate these global factors into our two data sets as follows (See Table 2 for more details on global push factors). For the industry-level dataset, we calculate for each month the average value of each factor for the 6 preceding months. For the bond-level data set, for each individual bond we compute the average value for each factor the 6 months prior to the issuance date.

# **C.** **<mark>Domestic Pull Factors</mark>**

As regards country-specific factors, the analysis controls for five macro-financial variables used to evaluate a country’s development, creditworthiness, and vulnerability. These variables are available on an annual basis and we match the macro variables with the corresponding year for each month in the industry-level panel dataset and the year of the bond issue date in the bond-level dataset:

- Real GDP per capita in U.S. Dollars ( _GDPPC_ ) is used to control for the level of development of a country given its positive correlation with international bond issuance.

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