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Corporate Credit Conditions Around the World: Novel Facts Through Holistic Data

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Abstract

We collect comprehensive granular data on various aspects of firms’ access to credit markets. We document ten facts that show that inferring credit conditions for new debt from those for existing debt – and vice versa – leads to erroneous conclusions. Secondary market spreads are poor proxies of the cost of new debt. Investment grade issuance is driven by firms’ own secondary market spreads, while high yield issuance responds to macroeconomic conditions. Bond issuances overstate changes in firm indebtedness. Emerging market bond and loan borrowing is complementary for firms with access to both markets, but borrowing of loan-only firms appears disconnected.

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  • Nina Boyarchenko & Leonardo Elias, 2023. "Corporate Credit Conditions Around the World: Novel Facts Through Holistic Data," Staff Reports 1074, Federal Reserve Bank of New York.
    • Handle: RePEc:fip:fednsr:97049
    DOI: 10.59576/sr.1074
    Note: Revised December 2024. Previous title: “The Good, the Bad, and the Ugly of International Debt Market Data”
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    More about this item

    Keywords

    corporate credit conditions; corporate bonds; multinational firms; primary and secondary market spreads; prepayment;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F30 - International Economics - - International Finance - - - General
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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