International Pricing of Emerging Market Corporate Debt
Author | : Ms.Sonja Keller |
Publisher | : International Monetary Fund |
Total Pages | : 39 |
Release | : 2010-01-01 |
ISBN-10 | : 9781451962475 |
ISBN-13 | : 1451962479 |
Rating | : 4/5 (479 Downloads) |
Download or read book International Pricing of Emerging Market Corporate Debt written by Ms.Sonja Keller and published by International Monetary Fund. This book was released on 2010-01-01 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.