The Determinants of Corporate Risk in Emerging Markets : An Option-Adjusted Spread Analysis /

This study explores the determinants of corporate bond spreads in emerging markets economies. Using a largely unexploited dataset, the paper finds that corporate bond spreads are determined by firm-specific variables, bond characteristics, macroeconomic conditions, sovereign risk, and global factors...

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Detalles Bibliográficos
Autor principal: Cavallo, Eduardo
Otros Autores: Valenzuela, Patricio
Formato: Revista
Lenguaje:English
Publicado: Washington, D.C. : International Monetary Fund, 2007.
Colección:IMF Working Papers; Working Paper ; No. 2007/228
Acceso en línea:Full text available on IMF
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100 1 |a Cavallo, Eduardo. 
245 1 4 |a The Determinants of Corporate Risk in Emerging Markets :   |b An Option-Adjusted Spread Analysis /  |c Eduardo Cavallo, Patricio Valenzuela. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2007. 
300 |a 1 online resource (24 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a This study explores the determinants of corporate bond spreads in emerging markets economies. Using a largely unexploited dataset, the paper finds that corporate bond spreads are determined by firm-specific variables, bond characteristics, macroeconomic conditions, sovereign risk, and global factors. A variance decomposition analysis shows that firm-level characteristics account for the larger share of the variance. In addition, the paper finds two asymmetries. The first is in line with the sovereign ceiling "lite" hypothesis which states that the transfer of risk from the sovereign to the private sector is less than 1 to 1. The second is consistent with the popular notion that panics are common in emerging markets where investors are less informed and more prone to herding. 
538 |a Mode of access: Internet 
700 1 |a Valenzuela, Patricio. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2007/228 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2007/228/001.2007.issue-228-en.xml  |z IMF e-Library