International Pricing of Emerging Market Corporate Debt : Does the Corporate Matter? /

We examine risk spreads charged on corporate bonds placed by emerging market borrowers on international exchanges. While global developments have an important effect on spreads, changes in firm-level default risk also matter significantly in a way consistent with theory and experience in mature mark...

Fuld beskrivelse

Bibliografiske detaljer
Hovedforfatter: Keller, Sonja
Andre forfattere: Mody, Ashoka
Format: Tidsskrift
Sprog:English
Udgivet: Washington, D.C. : International Monetary Fund, 2010.
Serier:IMF Working Papers; Working Paper ; No. 2010/026
Online adgang:Full text available on IMF
Beskrivelse
Summary:We examine risk spreads charged on corporate bonds placed by emerging market borrowers on international exchanges. While global developments have an important effect on spreads, changes in firm-level default risk also matter significantly in a way consistent with theory and experience in mature markets. In contrast, except during periods of financial crisis, country factors play a limited role. These findings go against the supposition that limited information on emerging market firms or significant agency problems prevent firm-level credit discrimination by international investors. The firm-level information capitalization into spreads possibly reflects protection afforded by the exchange listing on international markets.
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Fysisk beskrivelse:1 online resource (38 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Adgang:Electronic access restricted to authorized BRAC University faculty, staff and students