How Firms Use Domestic and International Corporate Bond Markets
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 firm...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2013
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| Online Access: | http://hdl.handle.net/10986/12048 |
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okr-10986-12048 |
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okr-10986-120482017-12-13T12:10:50Z How Firms Use Domestic and International Corporate Bond Markets Gozzi, Juan Carlos Levine, Ross Martinez Peria, Maria Soledad Schmukler, Sergio L. ACCESS TO CAPITAL ACCOUNTING AMOUNT OF CAPITAL ARBITRAGE ASSET-BACKED SECURITIES ASYMMETRIC INFORMATION BASIS POINTS BOND ISSUANCE BOND ISSUANCES BOND ISSUE BOND ISSUES BOND PRICES BOND TRADING BOND YIELD BOND YIELDS BONDS BORROWING COSTS BROKERS CAPITAL ACCOUNT CAPITAL FLOWS CAPITAL MARKET CAPITAL MARKETS CAPITAL STRUCTURE CASH FLOWS COMMERCIAL PAPER COMMERCIAL PAPER ISSUES COMPOSITION OF DEBT CONSTANT MATURITY CONVERTIBLE BONDS CORPORATE BOND CORPORATE BOND ISSUES CORPORATE BOND MARKET CORPORATE BOND MARKETS CORPORATE BONDS CORPORATE BORROWERS CORPORATE DEBT CORPORATE DEBT MARKET CORPORATE DEBT MARKETS CORPORATE FINANCE CORPORATE GOVERNANCE CORPORATE GOVERNANCE FRAMEWORK CORPORATE INVESTMENT CREDIT QUALITY CREDIT RATING CREDIT RATINGS CURRENCY COMPOSITION DEBT DEBT CONTRACTS DEBT ISSUANCE DEBT ISSUANCES DEBT ISSUE DEBT ISSUES DEBT MARKETS DEBT MATURITY DEBT SECURITIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DOMESTIC BOND DOMESTIC BOND MARKETS DOMESTIC CORPORATE BOND DOMESTIC CURRENCY DOMESTIC FINANCIAL MARKETS DOMESTIC MARKET DOMESTIC MARKETS DUMMY VARIABLE ECONOMIC EFFICIENCY EMERGING ECONOMIES EMERGING MARKET EMERGING MARKETS EQUITIES EQUITY ISSUES EQUITY MARKETS EUROBOND EURODOLLAR BONDS EXCHANGE RATE EXCHANGE RATE MOVEMENTS FEDERAL RESERVE FEDERAL RESERVE SYSTEM FINANCIAL ASSETS FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL LIBERALIZATION FINANCIAL MANAGEMENT FINANCIAL MARKET FINANCIAL RISK FINANCIAL SERVICES FINANCIAL SUPPORT FIXED INTEREST FIXED INTEREST RATE FIXED RATE FLOATING RATE FLOATING RATE DEBT FOREIGN CAPITAL FOREIGN CURRENCIES FOREIGN CURRENCY FOREIGN CURRENCY DEBT FOREIGN DEBT FOREIGN EXCHANGES FOREIGN INVESTOR FOREIGN INVESTORS FOREIGN MARKET FOREIGN MARKETS FOREIGN STOCK FREE BOND FREE BONDS GLOBAL BONDS GLOBAL CAPITAL GLOBAL CAPITAL MARKETS GLOBAL FINANCE GLOBALIZATION HOLDING HOME COUNTRY HOME MARKET ILLIQUID MARKETS INCOME LEVEL INFORMATION ASYMMETRIES INFORMATIONAL ASYMMETRIES INSTITUTIONAL INVESTORS INTEREST RATE DIFFERENTIAL INTEREST RATE DIFFERENTIALS INTEREST RATE PARITY INTEREST RATE RISK INTEREST RATE SPREADS INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BOND INTERNATIONAL BOND ISSUES INTERNATIONAL BOND MARKETS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKET INTERNATIONAL CAPITAL MARKETS INTERNATIONAL DEBT INTERNATIONAL DEBT MARKETS INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INTEGRATION INTERNATIONAL MARKETS INTERPOLATION INVESTMENT BANKS INVESTMENT FUNDS INVESTMENT HORIZONS INVESTOR PARTICIPATION INVESTOR PROTECTION ISSUANCE ISSUANCES LENDERS LEVY LIQUIDITY LIQUIDITY RISK LOAN LOAN MARKET LOCAL CURRENCY LOCAL MARKET LOCAL MARKETS MARKET COMPETITION MARKET DATA MARKET INTEGRATION MARKET MAKERS MARKET MICROSTRUCTURE MARKET PARTICIPANTS MARKET SEGMENTATION MATURITIES MATURITY MATURITY DATE MATURITY STRUCTURE MORAL HAZARD MORTGAGE MORTGAGE-BACKED SECURITIES PORTFOLIO PORTFOLIO ALLOCATION PORTFOLIOS PRIVATE BONDS PRIVATE CREDIT PRIVATE PLACEMENTS PRIVATE SECTOR DEVELOPMENT PUBLIC DEBT PUBLIC SECTOR DEBT RATES OF RETURN REAL ESTATE INVESTMENT REAL EXCHANGE RATES REAL INTEREST REAL INTEREST RATE RISK EXPOSURE RISK MANAGEMENT SECURITIES SHORT-TERM CAPITAL SHORT-TERM DEBT SINKING FUND STOCK EXCHANGES STOCK MARKET STOCK MARKET CAPITALIZATION STOCK MARKET DEVELOPMENT STOCK MARKET MOVEMENTS STOCK MARKETS TAX TAX TREATMENT TOTAL DEBT TRANSACTION TRANSACTION COSTS TREASURY TREASURY BONDS TREASURY SECURITIES TREASURY SECURITY VALUATION WEALTH EFFECTS WORLD MARKET INTEGRATION YANKEE BOND YANKEE BONDS YIELD CURVE YIELD SPREAD YIELD SPREADS YIELDS OF BONDS YIELDS ON BONDS 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. 2013-01-02T21:03:43Z 2013-01-02T21:03:43Z 2012-09 http://hdl.handle.net/10986/12048 English en_US Policy Research Working Paper; No. 6209 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
World Bank |
| building |
World Bank Open Knowledge Repository |
| collection |
Online Access |
| language |
English en_US |
| topic |
ACCESS TO CAPITAL ACCOUNTING AMOUNT OF CAPITAL ARBITRAGE ASSET-BACKED SECURITIES ASYMMETRIC INFORMATION BASIS POINTS BOND ISSUANCE BOND ISSUANCES BOND ISSUE BOND ISSUES BOND PRICES BOND TRADING BOND YIELD BOND YIELDS BONDS BORROWING COSTS BROKERS CAPITAL ACCOUNT CAPITAL FLOWS CAPITAL MARKET CAPITAL MARKETS CAPITAL STRUCTURE CASH FLOWS COMMERCIAL PAPER COMMERCIAL PAPER ISSUES COMPOSITION OF DEBT CONSTANT MATURITY CONVERTIBLE BONDS CORPORATE BOND CORPORATE BOND ISSUES CORPORATE BOND MARKET CORPORATE BOND MARKETS CORPORATE BONDS CORPORATE BORROWERS CORPORATE DEBT CORPORATE DEBT MARKET CORPORATE DEBT MARKETS CORPORATE FINANCE CORPORATE GOVERNANCE CORPORATE GOVERNANCE FRAMEWORK CORPORATE INVESTMENT CREDIT QUALITY CREDIT RATING CREDIT RATINGS CURRENCY COMPOSITION DEBT DEBT CONTRACTS DEBT ISSUANCE DEBT ISSUANCES DEBT ISSUE DEBT ISSUES DEBT MARKETS DEBT MATURITY DEBT SECURITIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DOMESTIC BOND DOMESTIC BOND MARKETS DOMESTIC CORPORATE BOND DOMESTIC CURRENCY DOMESTIC FINANCIAL MARKETS DOMESTIC MARKET DOMESTIC MARKETS DUMMY VARIABLE ECONOMIC EFFICIENCY EMERGING ECONOMIES EMERGING MARKET EMERGING MARKETS EQUITIES EQUITY ISSUES EQUITY MARKETS EUROBOND EURODOLLAR BONDS EXCHANGE RATE EXCHANGE RATE MOVEMENTS FEDERAL RESERVE FEDERAL RESERVE SYSTEM FINANCIAL ASSETS FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL LIBERALIZATION FINANCIAL MANAGEMENT FINANCIAL MARKET FINANCIAL RISK FINANCIAL SERVICES FINANCIAL SUPPORT FIXED INTEREST FIXED INTEREST RATE FIXED RATE FLOATING RATE FLOATING RATE DEBT FOREIGN CAPITAL FOREIGN CURRENCIES FOREIGN CURRENCY FOREIGN CURRENCY DEBT FOREIGN DEBT FOREIGN EXCHANGES FOREIGN INVESTOR FOREIGN INVESTORS FOREIGN MARKET FOREIGN MARKETS FOREIGN STOCK FREE BOND FREE BONDS GLOBAL BONDS GLOBAL CAPITAL GLOBAL CAPITAL MARKETS GLOBAL FINANCE GLOBALIZATION HOLDING HOME COUNTRY HOME MARKET ILLIQUID MARKETS INCOME LEVEL INFORMATION ASYMMETRIES INFORMATIONAL ASYMMETRIES INSTITUTIONAL INVESTORS INTEREST RATE DIFFERENTIAL INTEREST RATE DIFFERENTIALS INTEREST RATE PARITY INTEREST RATE RISK INTEREST RATE SPREADS INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BOND INTERNATIONAL BOND ISSUES INTERNATIONAL BOND MARKETS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKET INTERNATIONAL CAPITAL MARKETS INTERNATIONAL DEBT INTERNATIONAL DEBT MARKETS INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INTEGRATION INTERNATIONAL MARKETS INTERPOLATION INVESTMENT BANKS INVESTMENT FUNDS INVESTMENT HORIZONS INVESTOR PARTICIPATION INVESTOR PROTECTION ISSUANCE ISSUANCES LENDERS LEVY LIQUIDITY LIQUIDITY RISK LOAN LOAN MARKET LOCAL CURRENCY LOCAL MARKET LOCAL MARKETS MARKET COMPETITION MARKET DATA MARKET INTEGRATION MARKET MAKERS MARKET MICROSTRUCTURE MARKET PARTICIPANTS MARKET SEGMENTATION MATURITIES MATURITY MATURITY DATE MATURITY STRUCTURE MORAL HAZARD MORTGAGE MORTGAGE-BACKED SECURITIES PORTFOLIO PORTFOLIO ALLOCATION PORTFOLIOS PRIVATE BONDS PRIVATE CREDIT PRIVATE PLACEMENTS PRIVATE SECTOR DEVELOPMENT PUBLIC DEBT PUBLIC SECTOR DEBT RATES OF RETURN REAL ESTATE INVESTMENT REAL EXCHANGE RATES REAL INTEREST REAL INTEREST RATE RISK EXPOSURE RISK MANAGEMENT SECURITIES SHORT-TERM CAPITAL SHORT-TERM DEBT SINKING FUND STOCK EXCHANGES STOCK MARKET STOCK MARKET CAPITALIZATION STOCK MARKET DEVELOPMENT STOCK MARKET MOVEMENTS STOCK MARKETS TAX TAX TREATMENT TOTAL DEBT TRANSACTION TRANSACTION COSTS TREASURY TREASURY BONDS TREASURY SECURITIES TREASURY SECURITY VALUATION WEALTH EFFECTS WORLD MARKET INTEGRATION YANKEE BOND YANKEE BONDS YIELD CURVE YIELD SPREAD YIELD SPREADS YIELDS OF BONDS YIELDS ON BONDS |
| spellingShingle |
ACCESS TO CAPITAL ACCOUNTING AMOUNT OF CAPITAL ARBITRAGE ASSET-BACKED SECURITIES ASYMMETRIC INFORMATION BASIS POINTS BOND ISSUANCE BOND ISSUANCES BOND ISSUE BOND ISSUES BOND PRICES BOND TRADING BOND YIELD BOND YIELDS BONDS BORROWING COSTS BROKERS CAPITAL ACCOUNT CAPITAL FLOWS CAPITAL MARKET CAPITAL MARKETS CAPITAL STRUCTURE CASH FLOWS COMMERCIAL PAPER COMMERCIAL PAPER ISSUES COMPOSITION OF DEBT CONSTANT MATURITY CONVERTIBLE BONDS CORPORATE BOND CORPORATE BOND ISSUES CORPORATE BOND MARKET CORPORATE BOND MARKETS CORPORATE BONDS CORPORATE BORROWERS CORPORATE DEBT CORPORATE DEBT MARKET CORPORATE DEBT MARKETS CORPORATE FINANCE CORPORATE GOVERNANCE CORPORATE GOVERNANCE FRAMEWORK CORPORATE INVESTMENT CREDIT QUALITY CREDIT RATING CREDIT RATINGS CURRENCY COMPOSITION DEBT DEBT CONTRACTS DEBT ISSUANCE DEBT ISSUANCES DEBT ISSUE DEBT ISSUES DEBT MARKETS DEBT MATURITY DEBT SECURITIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DOMESTIC BOND DOMESTIC BOND MARKETS DOMESTIC CORPORATE BOND DOMESTIC CURRENCY DOMESTIC FINANCIAL MARKETS DOMESTIC MARKET DOMESTIC MARKETS DUMMY VARIABLE ECONOMIC EFFICIENCY EMERGING ECONOMIES EMERGING MARKET EMERGING MARKETS EQUITIES EQUITY ISSUES EQUITY MARKETS EUROBOND EURODOLLAR BONDS EXCHANGE RATE EXCHANGE RATE MOVEMENTS FEDERAL RESERVE FEDERAL RESERVE SYSTEM FINANCIAL ASSETS FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL LIBERALIZATION FINANCIAL MANAGEMENT FINANCIAL MARKET FINANCIAL RISK FINANCIAL SERVICES FINANCIAL SUPPORT FIXED INTEREST FIXED INTEREST RATE FIXED RATE FLOATING RATE FLOATING RATE DEBT FOREIGN CAPITAL FOREIGN CURRENCIES FOREIGN CURRENCY FOREIGN CURRENCY DEBT FOREIGN DEBT FOREIGN EXCHANGES FOREIGN INVESTOR FOREIGN INVESTORS FOREIGN MARKET FOREIGN MARKETS FOREIGN STOCK FREE BOND FREE BONDS GLOBAL BONDS GLOBAL CAPITAL GLOBAL CAPITAL MARKETS GLOBAL FINANCE GLOBALIZATION HOLDING HOME COUNTRY HOME MARKET ILLIQUID MARKETS INCOME LEVEL INFORMATION ASYMMETRIES INFORMATIONAL ASYMMETRIES INSTITUTIONAL INVESTORS INTEREST RATE DIFFERENTIAL INTEREST RATE DIFFERENTIALS INTEREST RATE PARITY INTEREST RATE RISK INTEREST RATE SPREADS INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BOND INTERNATIONAL BOND ISSUES INTERNATIONAL BOND MARKETS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKET INTERNATIONAL CAPITAL MARKETS INTERNATIONAL DEBT INTERNATIONAL DEBT MARKETS INTERNATIONAL ECONOMICS INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL INTEGRATION INTERNATIONAL MARKETS INTERPOLATION INVESTMENT BANKS INVESTMENT FUNDS INVESTMENT HORIZONS INVESTOR PARTICIPATION INVESTOR PROTECTION ISSUANCE ISSUANCES LENDERS LEVY LIQUIDITY LIQUIDITY RISK LOAN LOAN MARKET LOCAL CURRENCY LOCAL MARKET LOCAL MARKETS MARKET COMPETITION MARKET DATA MARKET INTEGRATION MARKET MAKERS MARKET MICROSTRUCTURE MARKET PARTICIPANTS MARKET SEGMENTATION MATURITIES MATURITY MATURITY DATE MATURITY STRUCTURE MORAL HAZARD MORTGAGE MORTGAGE-BACKED SECURITIES PORTFOLIO PORTFOLIO ALLOCATION PORTFOLIOS PRIVATE BONDS PRIVATE CREDIT PRIVATE PLACEMENTS PRIVATE SECTOR DEVELOPMENT PUBLIC DEBT PUBLIC SECTOR DEBT RATES OF RETURN REAL ESTATE INVESTMENT REAL EXCHANGE RATES REAL INTEREST REAL INTEREST RATE RISK EXPOSURE RISK MANAGEMENT SECURITIES SHORT-TERM CAPITAL SHORT-TERM DEBT SINKING FUND STOCK EXCHANGES STOCK MARKET STOCK MARKET CAPITALIZATION STOCK MARKET DEVELOPMENT STOCK MARKET MOVEMENTS STOCK MARKETS TAX TAX TREATMENT TOTAL DEBT TRANSACTION TRANSACTION COSTS TREASURY TREASURY BONDS TREASURY SECURITIES TREASURY SECURITY VALUATION WEALTH EFFECTS WORLD MARKET INTEGRATION YANKEE BOND YANKEE BONDS YIELD CURVE YIELD SPREAD YIELD SPREADS YIELDS OF BONDS YIELDS ON BONDS Gozzi, Juan Carlos Levine, Ross Martinez Peria, Maria Soledad Schmukler, Sergio L. How Firms Use Domestic and International Corporate Bond Markets |
| relation |
Policy Research Working Paper; No. 6209 |
| description |
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. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Gozzi, Juan Carlos Levine, Ross Martinez Peria, Maria Soledad Schmukler, Sergio L. |
| author_facet |
Gozzi, Juan Carlos Levine, Ross Martinez Peria, Maria Soledad Schmukler, Sergio L. |
| author_sort |
Gozzi, Juan Carlos |
| title |
How Firms Use Domestic and International Corporate Bond Markets |
| title_short |
How Firms Use Domestic and International Corporate Bond Markets |
| title_full |
How Firms Use Domestic and International Corporate Bond Markets |
| title_fullStr |
How Firms Use Domestic and International Corporate Bond Markets |
| title_full_unstemmed |
How Firms Use Domestic and International Corporate Bond Markets |
| title_sort |
how firms use domestic and international corporate bond markets |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://hdl.handle.net/10986/12048 |
| _version_ |
1610774530135949312 |