Domestic Financial Markets and Offshore Bond Financing

17 Pages Posted: 5 Oct 2016

See all articles by José María Serena

José María Serena

Bank for International Settlements (BIS)

Ramon Moreno

Self employed

Date Written: September 18, 2016

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.

JEL Classification: F23, F36, G15

Suggested Citation

Serena, Jose Maria and Moreno, Ramon, Domestic Financial Markets and Offshore Bond Financing (September 18, 2016). BIS Quarterly Review September 2016, Available at SSRN: https://ssrn.com/abstract=2842333

Jose Maria Serena (Contact Author)

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

Ramon Moreno

Self employed ( email )

Basel
Switzerland

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