Title A License to Issue (Anywhere) : Patterns and Drivers of Corporate Bonds in Latin America / Svetlana Vtyurina, Adrian Robles, and Bennett Sutton

Published [Washington, D.C.] : International Monetary Fund, [2017] ©2017

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Description 1 online resource (31 pages) Series IMF Working Paper ; WP/17/157 IMF working paper ; WP/17/157. Contents Cover; Contents; ABSTRACT; I. MOTIVATION; II. RECENT REFORMS AND THE STATE OF LATIN AMERICAN BOND MARKETS; III. DATA, METHODOLOGY, AND RESULTS; IV. CONCLUSIONS AND POLICY CONSIDERATIONS; REFERENCES; Figures; 1. Value of Bonds Outstanding in Local and External Markets, 2015; 2. LA-6: Corporate Bond Issuance; 3. LA-6: Corporate Issuance by Country; 4. Share of Trading of the 10 Largest Fixed Income Instruments, 2006-15; 5. Corporate Bond Market Turnover, 2016; 6. Corporate Share of Local Bond Trading, 2016; Tables; 1. LA-6: Summary of Corporate Bond Issuance; 2. Variables and Expected Outcomes 3. Choice of Market: Firm Level Data, with Time TrendAnnex Tables; 1. Summary of LA-6 Corporate Bond Issuance by Country; 2. Corporate Bond Issuance in Estimation Sample; 3. Summary Statistics for Firm-Specific Variables; 4. Summary Statistics for Firm-Specific Variables, Country Level; 5. Market Summary Statistics; 6. Detailed Breakdown of Choice of Market, with Time Trend; 7. Choice of Market: Full Results, with Seasoned Component; 8. Post-Estimation Measures of Fit Summary This paper overviews patterns in bond issuance in local and external markets by firms in six large Latin American countries. Data suggest that despite rising issuance, local markets remain small and shallow in several countries. Nevertheless, since greater funding is available to many firms in both markets, we investigate the factors that may explain the firm's choice on where to issue a bond. Using an unbalanced panel of firm and market-level indicators for years 1995-2015, we control for variables representing several theories of capital structure, and the results show that firm characteristics such as size and liquidity increase the likelihood of firms to issue externally. With respect to market characteristics, the market completeness hypothesis generates the most support, where market scale and depth are most important for the issuer's choice of the market, suggesting that local markets will have to become deeper to draw more firms and investment Notes Print version record Form Electronic book Author Robles, Adrian, author Sutton, Bennett W., author ISBN 1484310519 9781484310519

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