The Cost of Corporate Bond Financing in Latin America
- Autores
- Grandes, Marín; Pasquini, Ricardo; Panigo, Demian Tupac
- Año de publicación
- 2009
- Idioma
- inglés
- Tipo de recurso
- documento de conferencia
- Estado
- versión publicada
- Descripción
- Applying an extended version of the structural approach to pricing risky corporate debt, we look into the evolution and determinants of the cost of bond financing for Latin American firms. We use a dataset including 667 quarterly panel observations of Argentinean, Brazilian, Chilean and Mexican firms, with market and balance-sheet information in order to account for the cross-sectional and time series variations in the yield spreads of 72 US dollar-denominated corporate bonds issued by 22 different publicly traded (listed) firms. Resorting to panel econometric techniques, we test the economic and statistical significance of the determinants of corporate bond spreads, namely sovereign default risk, liquidity, leverage, firm-value volatility and risk-free interest rate volatility and the interaction between the latter two and leverage. In addition, when sovereign spreads come out as a statistically and economically significant determinant of corporate spreads, we test whether market participants apply the sovereign ceiling rule to the prices and yield spreads of those firms’ bonds, as rating agencies do under a number of circumstances and conditions.
Facultad de Ciencias Económicas - Materia
-
Ciencias Económicas
Emerging Bond Markets
Latin America
Structural models
Corporate bond yields
Corporate bond spreads
Sovereign Ceiling - Nivel de accesibilidad
- acceso abierto
- Condiciones de uso
- http://creativecommons.org/licenses/by-nc-sa/4.0/
- Repositorio
- Institución
- Universidad Nacional de La Plata
- OAI Identificador
- oai:sedici.unlp.edu.ar:10915/164587
Ver los metadatos del registro completo
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The Cost of Corporate Bond Financing in Latin AmericaGrandes, MarínPasquini, RicardoPanigo, Demian TupacCiencias EconómicasEmerging Bond MarketsLatin AmericaStructural modelsCorporate bond yieldsCorporate bond spreadsSovereign CeilingApplying an extended version of the structural approach to pricing risky corporate debt, we look into the evolution and determinants of the cost of bond financing for Latin American firms. We use a dataset including 667 quarterly panel observations of Argentinean, Brazilian, Chilean and Mexican firms, with market and balance-sheet information in order to account for the cross-sectional and time series variations in the yield spreads of 72 US dollar-denominated corporate bonds issued by 22 different publicly traded (listed) firms. Resorting to panel econometric techniques, we test the economic and statistical significance of the determinants of corporate bond spreads, namely sovereign default risk, liquidity, leverage, firm-value volatility and risk-free interest rate volatility and the interaction between the latter two and leverage. In addition, when sovereign spreads come out as a statistically and economically significant determinant of corporate spreads, we test whether market participants apply the sovereign ceiling rule to the prices and yield spreads of those firms’ bonds, as rating agencies do under a number of circumstances and conditions.Facultad de Ciencias Económicas2009-11info:eu-repo/semantics/conferenceObjectinfo:eu-repo/semantics/publishedVersionObjeto de conferenciahttp://purl.org/coar/resource_type/c_5794info:ar-repo/semantics/documentoDeConferenciaapplication/pdfhttp://sedici.unlp.edu.ar/handle/10915/164587enginfo:eu-repo/semantics/altIdentifier/isbn/978-987-99570-7-3info:eu-repo/semantics/altIdentifier/url/https://bd.aaep.org.ar/anales/works/works2009/grandes.pdfinfo:eu-repo/semantics/altIdentifier/issn/1852-0022info:eu-repo/semantics/openAccesshttp://creativecommons.org/licenses/by-nc-sa/4.0/Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0)reponame:SEDICI (UNLP)instname:Universidad Nacional de La Platainstacron:UNLP2025-09-03T11:15:10Zoai:sedici.unlp.edu.ar:10915/164587Institucionalhttp://sedici.unlp.edu.ar/Universidad públicaNo correspondehttp://sedici.unlp.edu.ar/oai/snrdalira@sedici.unlp.edu.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:13292025-09-03 11:15:10.684SEDICI (UNLP) - Universidad Nacional de La Platafalse |
dc.title.none.fl_str_mv |
The Cost of Corporate Bond Financing in Latin America |
title |
The Cost of Corporate Bond Financing in Latin America |
spellingShingle |
The Cost of Corporate Bond Financing in Latin America Grandes, Marín Ciencias Económicas Emerging Bond Markets Latin America Structural models Corporate bond yields Corporate bond spreads Sovereign Ceiling |
title_short |
The Cost of Corporate Bond Financing in Latin America |
title_full |
The Cost of Corporate Bond Financing in Latin America |
title_fullStr |
The Cost of Corporate Bond Financing in Latin America |
title_full_unstemmed |
The Cost of Corporate Bond Financing in Latin America |
title_sort |
The Cost of Corporate Bond Financing in Latin America |
dc.creator.none.fl_str_mv |
Grandes, Marín Pasquini, Ricardo Panigo, Demian Tupac |
author |
Grandes, Marín |
author_facet |
Grandes, Marín Pasquini, Ricardo Panigo, Demian Tupac |
author_role |
author |
author2 |
Pasquini, Ricardo Panigo, Demian Tupac |
author2_role |
author author |
dc.subject.none.fl_str_mv |
Ciencias Económicas Emerging Bond Markets Latin America Structural models Corporate bond yields Corporate bond spreads Sovereign Ceiling |
topic |
Ciencias Económicas Emerging Bond Markets Latin America Structural models Corporate bond yields Corporate bond spreads Sovereign Ceiling |
dc.description.none.fl_txt_mv |
Applying an extended version of the structural approach to pricing risky corporate debt, we look into the evolution and determinants of the cost of bond financing for Latin American firms. We use a dataset including 667 quarterly panel observations of Argentinean, Brazilian, Chilean and Mexican firms, with market and balance-sheet information in order to account for the cross-sectional and time series variations in the yield spreads of 72 US dollar-denominated corporate bonds issued by 22 different publicly traded (listed) firms. Resorting to panel econometric techniques, we test the economic and statistical significance of the determinants of corporate bond spreads, namely sovereign default risk, liquidity, leverage, firm-value volatility and risk-free interest rate volatility and the interaction between the latter two and leverage. In addition, when sovereign spreads come out as a statistically and economically significant determinant of corporate spreads, we test whether market participants apply the sovereign ceiling rule to the prices and yield spreads of those firms’ bonds, as rating agencies do under a number of circumstances and conditions. Facultad de Ciencias Económicas |
description |
Applying an extended version of the structural approach to pricing risky corporate debt, we look into the evolution and determinants of the cost of bond financing for Latin American firms. We use a dataset including 667 quarterly panel observations of Argentinean, Brazilian, Chilean and Mexican firms, with market and balance-sheet information in order to account for the cross-sectional and time series variations in the yield spreads of 72 US dollar-denominated corporate bonds issued by 22 different publicly traded (listed) firms. Resorting to panel econometric techniques, we test the economic and statistical significance of the determinants of corporate bond spreads, namely sovereign default risk, liquidity, leverage, firm-value volatility and risk-free interest rate volatility and the interaction between the latter two and leverage. In addition, when sovereign spreads come out as a statistically and economically significant determinant of corporate spreads, we test whether market participants apply the sovereign ceiling rule to the prices and yield spreads of those firms’ bonds, as rating agencies do under a number of circumstances and conditions. |
publishDate |
2009 |
dc.date.none.fl_str_mv |
2009-11 |
dc.type.none.fl_str_mv |
info:eu-repo/semantics/conferenceObject info:eu-repo/semantics/publishedVersion Objeto de conferencia http://purl.org/coar/resource_type/c_5794 info:ar-repo/semantics/documentoDeConferencia |
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http://sedici.unlp.edu.ar/handle/10915/164587 |
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http://sedici.unlp.edu.ar/handle/10915/164587 |
dc.language.none.fl_str_mv |
eng |
language |
eng |
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info:eu-repo/semantics/altIdentifier/isbn/978-987-99570-7-3 info:eu-repo/semantics/altIdentifier/url/https://bd.aaep.org.ar/anales/works/works2009/grandes.pdf info:eu-repo/semantics/altIdentifier/issn/1852-0022 |
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openAccess |
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http://creativecommons.org/licenses/by-nc-sa/4.0/ Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) |
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