The art of debt

Governments across the globe face huge increases in borrowing requirements, sparking concern over possible rating downgrades, while many have seen their credit default swap spreads widen dramatically. Despite this, sovereign debt management offices claim to have encountered little difficulty in issuing government debt. By Matt Cameron

Until recently, sovereign debt management was viewed as being almost humdrum: taking care of government funding needs and meeting payment obligations, while exercising control over the risks being taken. But over the past 18 months or so, national debt management agencies have been at the centre of government efforts to respond to the financial crisis. With governments across the globe pouring trillions of dollars into efforts to rescue key financial institutions and revive stalled economies