Large international corporate bonds: Investor behavior and firm responses*

• 成果类型: Article
• 署名作者: Calomiris, Charles W.; Larrain, Mauricio; Schmukler, Sergio L.; Williams, Tomas
• 署名单位: National Bureau of Economic Research; Pontificia Universidad Catolica de Chile; The World Bank; George Washington University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2022.103624
• 发表日期: 2022
• 关键词: Benchmark indexes; Bond issuance; Corporate financing; Emerging markets; institutional investors

摘要

Emerging 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