Global Corporate Debt during Crises : Implications of Switching Borrowing across Markets

Cortina, Juan J. ; Didier, Tatiana ; Schmukler, Sergio L.

World Bank, Washington, DC

关键词: CORPORATE DEBT;    EMERGING MARKET ECONOMIES;    DEBT MARKETS;    CORPORATE BONDS;    CORPORATE FINANCE;   

DOI  :  10.1596/1813-9450-9142
RP-ID  :  WPS9142

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper studies how crises promptedfirms to switch borrowing across markets, impacting theamount borrowed, maturity, and currency denomination at thefirm and aggregate levels. Using data on worldwide debtissuance from advanced and emerging economies, the papershows that firms shifted their issuances between domesticand international syndicated loans and corporate bondsduring financial crises. Firms reduced their borrowing inshock-hit markets but increased it in other debt markets.Firms also moved toward longer-term markets, maintaining (oreven increasing) their borrowing maturity. As they movedtoward domestic markets during international crises, firmsreduced the share of foreign currency debt. The oppositeoccurred during domestic crises. Large firms were the onesthat switched between international and domestic markets,affecting aggregate capital raising activity. The analysisof four distinct markets generates patterns consistent withcredit supply shocks that are different from those obtainedwhen studying the dynamics of individual markets.