Debt Levels, Debt Composition, and Sovereign Spreads in Emerging and Advanced Economies. Ricardo Hausmann, September 2013, Paper. "This paper studies the relationship between sovereign spreads and the interaction between debt composition and debt levels in advanced and emerging market countries. It finds that in emerging market countries there is a significant correlation between spreads and debt levels. This correlation, however, is not statistically significant in countries where most public debt is denominated in local currency. In advanced economies, the magnitude of the correlation..."