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Domestic financial markets and offshore bond financing

Author

Listed:
  • José María Serena
  • Ramon Moreno

Abstract

Firms in emerging market economies markedly increased their issuance of bonds in offshore markets after the Great Financial Crisis. By contrast, increases in offshore bond issuance by firms in advanced economies were more muted. An empirical analysis suggests that the less developed state of financial markets in emerging economies may have encouraged firms there to step up their offshore bond issuance as external financing costs fell. Firms appear to use the proceeds of offshore bonds to boost their holdings of short-term assets. This may raise financial stability concerns.

Suggested Citation

  • José María Serena & Ramon Moreno, 2016. "Domestic financial markets and offshore bond financing," BIS Quarterly Review, Bank for International Settlements, September.
    • Handle: RePEc:bis:bisqtr:1609g
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    References listed on IDEAS

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    Cited by:

    1. Stephanie Guichard, 2017. "10 Years after the Global Financial Crisis: What Have We Learnt About International Capital Flows?," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 8(03), pages 1-30, October.
    2. Golden, Brian & Maqui, Eduardo, 2018. "Shadow banking risks in non-securitisation SPEs," Economic Letters 12/EL/18, Central Bank of Ireland.
    3. Carol Bertaut & Beau Bressler & Stephanie Curcuru, 2020. "Globalisation and the reach of multinationals: implications for portfolio exposures, capital flows, and home bias," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Bridging measurement challenges and analytical needs of external statistics: evolution or revolution?, volume 52, Bank for International Settlements.
    4. Golden, Brian & Maqui, Eduardo, 2023. "How ‘special’ are international banks sponsoring Irish-resident SPEs?," Finance Research Letters, Elsevier, vol. 52(C).
    5. Nemlioglu, Ilayda & Mallick, Sushanta K., 2020. "Do innovation-intensive firms mitigate their valuation uncertainty during bad times?," Journal of Economic Behavior & Organization, Elsevier, vol. 177(C), pages 913-940.
    6. Carol Bertaut & Beau Bressler & Stephanie E Curcuru, 2019. "Globalization and the geography of capital flows," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Are post-crisis statistical initiatives completed?, volume 49, Bank for International Settlements.
    7. Renu Kohli & Pravakar Sahoo & M. Shuheb Khan, 2017. "Developing India's Offshore Local Currency Bond Market: Lessons from Emerging Countries," Working Papers id:12039, eSocialSciences.

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