Large international corporate bonds: Investor behavior and firm responses*

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dc.contributor.authorCalomiris, Charles W.
dc.contributor.authorLarrain, Mauricio
dc.contributor.authorSchmukler, Sergio L.
dc.contributor.authorWilliams, Tomas
dc.date.accessioned2025-01-20T21:05:37Z
dc.date.available2025-01-20T21:05:37Z
dc.date.issued2022
dc.description.abstractEmerging market corporations have significantly increased their borrowing in international debt markets since 2008. We provide a detailed dive into this borrowing by showing that it happened in one particular market segment. Firms significantly increased their large bond issu-ances, mostly above US$500 million, which became cheaper to issue. We find a strong cluster-ing of issuances with a face value of exactly $500 million after 2008 compared to developed markets. This suggests increased willingness from investors, especially cross-over investors, to purchase emerging market bonds included in newly created bond indexes, which require a minimum face value of $500 million. However, not all firms could issue such large bonds. Firms large enough to do so faced a trade-off. Issuing index-eligible bonds allowed them to borrow at a lower cost at the expense of accumulating cash. Because of this "size yield dis-count," many companies increased their issuances of index-eligible bonds, accumulating cash holdings.(c) 2022 The World Bank. Published by Elsevier Ltd
dc.fuente.origenWOS
dc.identifier.doi10.1016/j.jinteco.2022.103624
dc.identifier.eissn1873-0353
dc.identifier.issn0022-1996
dc.identifier.urihttps://doi.org/10.1016/j.jinteco.2022.103624
dc.identifier.urihttps://repositorio.uc.cl/handle/11534/93309
dc.identifier.wosidWOS:000808269800002
dc.language.isoen
dc.revistaJournal of international economics
dc.rightsacceso restringido
dc.subjectBenchmark indexes
dc.subjectBond issuance
dc.subjectCorporate financing
dc.subjectEmerging markets
dc.subjectInstitutional investors
dc.subject.ods08 Decent Work and Economic Growth
dc.subject.odspa08 Trabajo decente y crecimiento económico
dc.titleLarge international corporate bonds: Investor behavior and firm responses*
dc.typeartículo
dc.volumen137
sipa.indexWOS
sipa.trazabilidadWOS;2025-01-12
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