The Bond Market Roadmap

An efficient, well functioning bond market is essential to economic development. It helps mobilize savings and investments needed by governments and the private sector to support development. A well-functioning bond market also promotes the growth of pension funds, insurance companies, and other contract savings vehicles that attract long-term savings and provide long-term capital for infrastructure and other capital projects. Countries with no or poorly functioning bond markets can benefit greatly from developing a bond market. This product guides the process of identifying the steps needed to create a market and helps countries lay out a plan for starting and maintaining an efficient bond market.

Product Approach and Outputs

In preparing a Bond Market Roadmap, the Sibley Consortium initially deploys a small team of bond market experts to evaluate country economic conditions and determine the appropriateness of, and basic steps needed, to create a local bond market. The field activities of the team include:

  1. Assessing the current state of the bond market encompassing the following elements:
    • Legal and regulatory environment
    • Market participants
    • Taxation
    • Accounting practices
    • Risk management practices
    • Clearing and settlement practices
  2. Reviewing past studies and ongoing interventions
  3. Identifying the optimal state, i.e., what rate of market growth can be expected and an estimate of the future size of the bond market
  4. Identifying constraints to creating an efficient bond market and preparing strategies for overcoming the constraints
  5. Developing a roadmap that outlines the specific steps and sequence that should be taken to create a successful bond market

How to Access the Bond Market Roadmap

The product is available from the Sibley Consortium through the General Business Trade and Investment II (GBTI II) indefinite quantity contract (IQC). A brief written request through the Mission or Regional Contracting Officer is all that is required by the fast-track procurement process set up by USAID to provide easy access to small businesses. Contact Theresa Stoll, GBTI II CTO, or Mark Karns, Deputy CTO, for more details on the fast-track process available to small businesses under USAID procurement regulations.

What Does It Cost?

Developing a Bond Market Roadmap requires about three months to complete and typically involves about six to seven person-months of short-term consulting effort and one person-month of local personnel time. In carrying out the ?product? Sibley personnel will spend as much time working with USAID personnel as the Mission personnel can provide. The Roadmap solution has been carried out for the ADB and the World Bank for amounts ranging between $200K and $300K.

USAID Contacts:

Theresa Stoll
CTO GBTI II EGAT/EG
Tel: (202) 712-0924
Fax: (202) 216-3025
stoll@usaid.gov

Mark H. Karns, CFA
658427
Structured Finance Advisor
EGAT/ED/EDFM
Tel: (202) 712-5516
Fax: (202) 216-3025
mkarns@usaid.gov


Sibley Consortium Contacts:

Robert Rourke
Project Manager GBTI II
Tel: (202) 833-9588
Fax: (202) 775-9416
gbti@sibleyinternational.com

Donna Sibley
President
Tel: (202) 833-9588
Fax: (202) 775-9416
dsibley@sileyinternational.com