All that Glitters Is not Gold: The Corporate Debt Maturity Structure in Asia Pacific

30 Pages Posted: 24 Nov 2020

See all articles by Jan O

Jan O

Independent

Wilson Wan

Hong Kong Monetary Authority

Date Written: October 12, 2020

Abstract

We show that the debt maturity structure of non-financial corporates in Asia Pacific has been generally decreasing over the last two decades. The percentage of total outstanding debt that have a maturity of over 3 years to total outstanding of debt decreased from 66% at the end of 2000 to 46% at the end of 2019, while the median percentage decreased from 40% to 26% over the same period. The decreasing trend could amplify adverse effects caused by credit and liquidity shock. Our result shows that both firms-specific and macroeconomic factors can explain the trend in both advanced economies and emerging market economies, this in turn providing relevant policy implications for policy-makers to contain rollover risk triggered by shortening debt maturity structure in the Asia Pacific.

Keywords: Debt maturity structure, Global Financial Crisis, Asia Pacific region

JEL Classification: G20, G30, G32

Suggested Citation

O, Jan and Wan, Wilson, All that Glitters Is not Gold: The Corporate Debt Maturity Structure in Asia Pacific (October 12, 2020). Available at SSRN: https://ssrn.com/abstract=3709760 or http://dx.doi.org/10.2139/ssrn.3709760

Jan O

Independent ( email )

Wilson Wan (Contact Author)

Hong Kong Monetary Authority ( email )

3 Garden Road, 30th Floor
Hong Kong
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