The Boom in Corporate Borrowing after the Global Financial Crisis : Different Tales from East Asia and Latin America

Firms from emerging economies increased their bond financing significantly after the 2008-09 global financial crisis. The patterns of corporate borrowing in East Asia and Latin America offer very different lessons. In East Asia, the main component...

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Main Authors:	Abraham, Facundo, Cortina, Juan J., Schmukler, Sergio L.
Format:	Brief
Language:	English
Published:	World Bank, Washington, DC 2021
Subjects:	CORPORATE BORROWING GLOBAL FINANCIAL CRISIS BOND MARKET
Online Access:	http://documents.worldbank.org/curated/en/622691613576693850/The-Boom-in-Corporate-Borrowing-after-the-Global-Financial-Crisis-Different-Tales-from-East-Asia-and-Latin-America http://hdl.handle.net/10986/35193

id	okr-10986-35193
recordtype	oai_dc
spelling	okr-10986-351932021-04-23T14:02:18Z The Boom in Corporate Borrowing after the Global Financial Crisis : Different Tales from East Asia and Latin America Abraham, Facundo Cortina, Juan J. Schmukler, Sergio L. CORPORATE BORROWING GLOBAL FINANCIAL CRISIS BOND MARKET Firms from emerging economies increased their bond financing significantly after the 2008-09 global financial crisis. The patterns of corporate borrowing in East Asia and Latin America offer very different lessons. In East Asia, the main component behind the overall growth in bond financing was an expansion in domestic bond issuances, in domestic currency, by more and smaller firms. This expansion seems to be explained by a higher supply of funds by domestic investors, which lowered issuance costs. In Latin America, relatively larger firms tended to borrow from international markets issuing foreign currency bonds. These contrasting patterns have resulted in exposures to different types of risks. Risks in East Asia have been more related to the increasing debt accumulation by smaller firms, issuing debt at shorter maturities. Latin American firms have been more exposed to external factors and currency depreciations. 2021-02-25T22:18:16Z 2021-02-25T22:18:16Z 2021-02-18 Brief http://documents.worldbank.org/curated/en/622691613576693850/The-Boom-in-Corporate-Borrowing-after-the-Global-Financial-Crisis-Different-Tales-from-East-Asia-and-Latin-America http://hdl.handle.net/10986/35193 English Research and Policy Brief;No. 42 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Brief East Asia and Pacific Latin America & Caribbean East Asia Latin America
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	CORPORATE BORROWING GLOBAL FINANCIAL CRISIS BOND MARKET
spellingShingle	CORPORATE BORROWING GLOBAL FINANCIAL CRISIS BOND MARKET Abraham, Facundo Cortina, Juan J. Schmukler, Sergio L. The Boom in Corporate Borrowing after the Global Financial Crisis : Different Tales from East Asia and Latin America
geographic_facet	East Asia and Pacific Latin America & Caribbean East Asia Latin America
relation	Research and Policy Brief;No. 42
description	Firms from emerging economies increased their bond financing significantly after the 2008-09 global financial crisis. The patterns of corporate borrowing in East Asia and Latin America offer very different lessons. In East Asia, the main component behind the overall growth in bond financing was an expansion in domestic bond issuances, in domestic currency, by more and smaller firms. This expansion seems to be explained by a higher supply of funds by domestic investors, which lowered issuance costs. In Latin America, relatively larger firms tended to borrow from international markets issuing foreign currency bonds. These contrasting patterns have resulted in exposures to different types of risks. Risks in East Asia have been more related to the increasing debt accumulation by smaller firms, issuing debt at shorter maturities. Latin American firms have been more exposed to external factors and currency depreciations.
format	Brief
author	Abraham, Facundo Cortina, Juan J. Schmukler, Sergio L.
author_facet	Abraham, Facundo Cortina, Juan J. Schmukler, Sergio L.
author_sort	Abraham, Facundo
title	The Boom in Corporate Borrowing after the Global Financial Crisis : Different Tales from East Asia and Latin America
title_short	The Boom in Corporate Borrowing after the Global Financial Crisis : Different Tales from East Asia and Latin America
title_full	The Boom in Corporate Borrowing after the Global Financial Crisis : Different Tales from East Asia and Latin America
title_fullStr	The Boom in Corporate Borrowing after the Global Financial Crisis : Different Tales from East Asia and Latin America
title_full_unstemmed	The Boom in Corporate Borrowing after the Global Financial Crisis : Different Tales from East Asia and Latin America
title_sort	boom in corporate borrowing after the global financial crisis : different tales from east asia and latin america
publisher	World Bank, Washington, DC
publishDate	2021
url	http://documents.worldbank.org/curated/en/622691613576693850/The-Boom-in-Corporate-Borrowing-after-the-Global-Financial-Crisis-Different-Tales-from-East-Asia-and-Latin-America http://hdl.handle.net/10986/35193
_version_	1764482521664323584

The Boom in Corporate Borrowing after the Global Financial Crisis : Different Tales from East Asia and Latin America

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