How Firms Use Domestic and International Corporate Bond Markets

50 Pages Posted: 21 Jan 2012

See all articles by Juan Carlos Gozzi

Juan Carlos Gozzi

Independent

Ross Levine

University of California, Berkeley - Haas School of Business; National Bureau of Economic Research (NBER)

Maria Soledad Martinez Peria

International Monetary Fund (IMF)

Sergio L. Schmukler

World Bank - Development Research Group (DECRG)

Multiple version iconThere are 2 versions of this paper

Date Written: January 2012

Abstract

This paper provides the first comprehensive documentation of the main features of corporate bond issues in domestic and international markets and analyzes how firms use these markets after they internationalize. We find that debt issues in domestic and international bond markets have different characteristics, not explained by differences across firms or their country of origin. International issues tend to be larger, of shorter maturity, denominated in foreign currency, and include a higher fraction of fixed rate contracts. Moreover, a large proportion of firms remain active in domestic bond markets after accessing international markets, and many of these firms use both markets for different types of issues. This evidence suggests that domestic and international bond markets provide different financial services and are not substitutes, but rather complements.

Suggested Citation

Gozzi, Juan Carlos and Levine, Ross Eric and Martinez Peria, Maria Soledad and Schmukler, Sergio, How Firms Use Domestic and International Corporate Bond Markets (January 2012). NBER Working Paper No. w17763. Available at SSRN: https://ssrn.com/abstract=1989335

Juan Carlos Gozzi (Contact Author)

Independent ( email )

No Address Available

Ross Eric Levine

University of California, Berkeley - Haas School of Business ( email )

545 Student Services Building, #1900
2220 Piedmont Avenue
Berkeley, CA 94720
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Maria Soledad Martinez Peria

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Sergio Schmukler

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN MC 3-301
Washington, DC 20433
United States
202-458-4167 (Phone)
202-522-3518 (Fax)

HOME PAGE: http://www.worldbank.org/en/about/people/s/sergio-schmukler

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