How Firms Use Domestic and International Corporate Bond Markets

46 Pages Posted: 20 Apr 2016

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: September 1, 2012

Abstract

This paper provides the first comprehensive documentation of how firms use domestic and international corporate bond markets. Debt issues in domestic and international markets have different characteristics, not explained by differences across firms or countries. International issues tend to be larger, of shorter maturity, denominated in foreign currency, include more fixed rate contracts, and entail lower yields. These patterns remain when analyzing issues by firms from countries with more developed domestic markets and higher financial integration, and even when comparing issues conducted by the same firm in different markets. These findings are consistent with the views that (1) frictions limit the ability of investors and firms to enter into certain contracts in certain markets, (2) domestic and international markets provide distinct financial services and firms use them as complements, and (3) firms with access to domestic and international markets enjoy advantages relative to those that rely solely on domestic markets.

Keywords: Debt Markets, Emerging Markets, Markets and Market Access, Microfinance, Currencies and Exchange Rates

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 (September 1, 2012). World Bank Policy Research Working Paper No. 6209. Available at SSRN: https://ssrn.com/abstract=2151771

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

Register to save articles to
your library

Register

Paper statistics

Downloads
97
Abstract Views
686
rank
233,583
PlumX Metrics