Corporate Borrowing and Debt Maturity : The Effects of Market Access and Crises
This paper studies the extent to which access to domestic and international bond markets and syndicated loan markets and switches across them impact corporate debt maturity. Using world issuance activity during 1991-2014, the paper shows that diffe...
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| Format: | Working Paper |
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World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/09/26773256/long-maturity-corporate-borrowing-evidence-bond-loan-issuances-across-markets http://hdl.handle.net/10986/25060 |
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okr-10986-250602021-06-14T10:17:02Z Corporate Borrowing and Debt Maturity : The Effects of Market Access and Crises Cortina-Lorente, Juan Jose Didier, Tatiana Schmukler, Sergio L. capital raising corporate bonds debt markets firm financing global financial crisis issuance maturity long-term finance syndicated loans This paper studies the extent to which access to domestic and international bond markets and syndicated loan markets and switches across them impact corporate debt maturity. Using world issuance activity during 1991-2014, the paper shows that different markets provide financing at different terms and that the importance of each market varies over time. Thus, the type of debt issued and its composition affect corporate maturity. During the global financial crisis of 2008-09, firms issued more bonds and, in developing countries, also more domestic loans. Because these markets are of longer maturity, the substitution across them allowed the largest firms that switched markets to maintain their average borrowing maturity, even when the maturity within each market declined for switchers and non-switchers. This evidence suggests that firms use different debt markets as complements and substitutes, and that compositional effects across firms and markets have a material impact on firm-specific and aggregate maturity. 2016-09-13T15:38:21Z 2016-09-13T15:38:21Z 2016-09 Working Paper http://documents.worldbank.org/curated/en/2016/09/26773256/long-maturity-corporate-borrowing-evidence-bond-loan-issuances-across-markets http://hdl.handle.net/10986/25060 English en_US Policy Research Working Paper;No. 7815 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
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Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
capital raising corporate bonds debt markets firm financing global financial crisis issuance maturity long-term finance syndicated loans |
| spellingShingle |
capital raising corporate bonds debt markets firm financing global financial crisis issuance maturity long-term finance syndicated loans Cortina-Lorente, Juan Jose Didier, Tatiana Schmukler, Sergio L. Corporate Borrowing and Debt Maturity : The Effects of Market Access and Crises |
| relation |
Policy Research Working Paper;No. 7815 |
| description |
This paper studies the extent to which
access to domestic and international bond markets and
syndicated loan markets and switches across them impact
corporate debt maturity. Using world issuance activity
during 1991-2014, the paper shows that different markets
provide financing at different terms and that the importance
of each market varies over time. Thus, the type of debt
issued and its composition affect corporate maturity. During
the global financial crisis of 2008-09, firms issued more
bonds and, in developing countries, also more domestic
loans. Because these markets are of longer maturity, the
substitution across them allowed the largest firms that
switched markets to maintain their average borrowing
maturity, even when the maturity within each market declined
for switchers and non-switchers. This evidence suggests that
firms use different debt markets as complements and
substitutes, and that compositional effects across firms and
markets have a material impact on firm-specific and
aggregate maturity. |
| format |
Working Paper |
| author |
Cortina-Lorente, Juan Jose Didier, Tatiana Schmukler, Sergio L. |
| author_facet |
Cortina-Lorente, Juan Jose Didier, Tatiana Schmukler, Sergio L. |
| author_sort |
Cortina-Lorente, Juan Jose |
| title |
Corporate Borrowing and Debt Maturity : The Effects of Market Access and Crises |
| title_short |
Corporate Borrowing and Debt Maturity : The Effects of Market Access and Crises |
| title_full |
Corporate Borrowing and Debt Maturity : The Effects of Market Access and Crises |
| title_fullStr |
Corporate Borrowing and Debt Maturity : The Effects of Market Access and Crises |
| title_full_unstemmed |
Corporate Borrowing and Debt Maturity : The Effects of Market Access and Crises |
| title_sort |
corporate borrowing and debt maturity : the effects of market access and crises |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/2016/09/26773256/long-maturity-corporate-borrowing-evidence-bond-loan-issuances-across-markets http://hdl.handle.net/10986/25060 |
| _version_ |
1764458274102444032 |