Patterns of Financing During Periods of High Risk Aversion : How Have Latin Firms Fared in this Crisis So Far?
This note examines the extent to which firms in Latin America have been able to raise capital through debt and equity securities as well as syndicated loans, both abroad and domestically, since the onset of the 2008 global financial crisis. The public and the private sectors alike lost access to foreign sources of financing during the height of the turbulence. Furthermore, two months after the Lehman Brothers' collapse, only government owned firms and governments themselves were able to re-enter international markets to some extent and raise capital. Thus, the evidence suggests an important role for government guarantees in attracting foreign investors in times of high risk aversion. In domestic and syndicated loan markets, there has been a marked decrease in the total amount raised, although they have remained a viable option for the private sector in Latin America. To the extent possible, non-government borrowers have been able to raise capital in these markets and have generally met their rollover needs. In contrast, the role of sovereign guarantees in attracting local investors seems to have been more important in Eastern Europe and Southeast Asia, where government entities have accounted for respectively 80 and 44 percent of all new issues in local markets, compared to less than 15 percent in LAC.
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dig-okr-10986109852024-08-08T16:11:01Z Patterns of Financing During Periods of High Risk Aversion : How Have Latin Firms Fared in this Crisis So Far? Didier, Tatiana ACCESS TO CAPITAL ACCESS TO CAPITAL MARKETS ACCESS TO FOREIGN MARKETS ACCESS TO MARKETS AMOUNT OF CAPITAL BANKING SECTOR BANKING SYSTEM BONDS CAPITAL MARKETS CAPITAL RAISING CORPORATIONS CREDIT CONSTRAINTS DEBT DEBT ISSUES DEVELOPING COUNTRIES DOMESTIC BANKING DOMESTIC CAPITAL DOMESTIC CAPITAL MARKETS DOMESTIC MARKETS EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS EQUITY SECURITIES FINANCIAL CRISIS FIRMS FOREIGN CAPITAL FOREIGN INVESTORS FOREIGN MARKETS GOVERNMENT BONDS GOVERNMENT GUARANTEES INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL MARKETS ISSUANCE LENDERS LOAN LOAN MARKET LOAN MARKETS LOCAL BANKS LOCAL INVESTORS LOCAL MARKETS REAL INTEREST REAL INTEREST RATE RISK AVERSION SECURITIES MARKETS SOVEREIGN GUARANTEES SOVEREIGN ISSUES SPREAD This note examines the extent to which firms in Latin America have been able to raise capital through debt and equity securities as well as syndicated loans, both abroad and domestically, since the onset of the 2008 global financial crisis. The public and the private sectors alike lost access to foreign sources of financing during the height of the turbulence. Furthermore, two months after the Lehman Brothers' collapse, only government owned firms and governments themselves were able to re-enter international markets to some extent and raise capital. Thus, the evidence suggests an important role for government guarantees in attracting foreign investors in times of high risk aversion. In domestic and syndicated loan markets, there has been a marked decrease in the total amount raised, although they have remained a viable option for the private sector in Latin America. To the extent possible, non-government borrowers have been able to raise capital in these markets and have generally met their rollover needs. In contrast, the role of sovereign guarantees in attracting local investors seems to have been more important in Eastern Europe and Southeast Asia, where government entities have accounted for respectively 80 and 44 percent of all new issues in local markets, compared to less than 15 percent in LAC. 2012-08-13T13:47:10Z 2012-08-13T13:47:10Z 2009-05 http://documents.worldbank.org/curated/en/2009/05/11955070/patterns-financing-during-periods-high-risk-aversion-latin-firms-fared-crisis-so-far https://hdl.handle.net/10986/10985 English Latin America and the Caribbean Region (LCR) Crisis Briefs CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank application/pdf text/plain World Bank, Washington, DC |
| institution |
Banco Mundial |
| collection |
DSpace |
| country |
Estados Unidos |
| countrycode |
US |
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Bibliográfico |
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En linea |
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dig-okr |
| tag |
biblioteca |
| region |
America del Norte |
| libraryname |
Biblioteca del Banco Mundial |
| language |
English |
| topic |
ACCESS TO CAPITAL ACCESS TO CAPITAL MARKETS ACCESS TO FOREIGN MARKETS ACCESS TO MARKETS AMOUNT OF CAPITAL BANKING SECTOR BANKING SYSTEM BONDS CAPITAL MARKETS CAPITAL RAISING CORPORATIONS CREDIT CONSTRAINTS DEBT DEBT ISSUES DEVELOPING COUNTRIES DOMESTIC BANKING DOMESTIC CAPITAL DOMESTIC CAPITAL MARKETS DOMESTIC MARKETS EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS EQUITY SECURITIES FINANCIAL CRISIS FIRMS FOREIGN CAPITAL FOREIGN INVESTORS FOREIGN MARKETS GOVERNMENT BONDS GOVERNMENT GUARANTEES INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL MARKETS ISSUANCE LENDERS LOAN LOAN MARKET LOAN MARKETS LOCAL BANKS LOCAL INVESTORS LOCAL MARKETS REAL INTEREST REAL INTEREST RATE RISK AVERSION SECURITIES MARKETS SOVEREIGN GUARANTEES SOVEREIGN ISSUES SPREAD ACCESS TO CAPITAL ACCESS TO CAPITAL MARKETS ACCESS TO FOREIGN MARKETS ACCESS TO MARKETS AMOUNT OF CAPITAL BANKING SECTOR BANKING SYSTEM BONDS CAPITAL MARKETS CAPITAL RAISING CORPORATIONS CREDIT CONSTRAINTS DEBT DEBT ISSUES DEVELOPING COUNTRIES DOMESTIC BANKING DOMESTIC CAPITAL DOMESTIC CAPITAL MARKETS DOMESTIC MARKETS EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS EQUITY SECURITIES FINANCIAL CRISIS FIRMS FOREIGN CAPITAL FOREIGN INVESTORS FOREIGN MARKETS GOVERNMENT BONDS GOVERNMENT GUARANTEES INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL MARKETS ISSUANCE LENDERS LOAN LOAN MARKET LOAN MARKETS LOCAL BANKS LOCAL INVESTORS LOCAL MARKETS REAL INTEREST REAL INTEREST RATE RISK AVERSION SECURITIES MARKETS SOVEREIGN GUARANTEES SOVEREIGN ISSUES SPREAD |
| spellingShingle |
ACCESS TO CAPITAL ACCESS TO CAPITAL MARKETS ACCESS TO FOREIGN MARKETS ACCESS TO MARKETS AMOUNT OF CAPITAL BANKING SECTOR BANKING SYSTEM BONDS CAPITAL MARKETS CAPITAL RAISING CORPORATIONS CREDIT CONSTRAINTS DEBT DEBT ISSUES DEVELOPING COUNTRIES DOMESTIC BANKING DOMESTIC CAPITAL DOMESTIC CAPITAL MARKETS DOMESTIC MARKETS EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS EQUITY SECURITIES FINANCIAL CRISIS FIRMS FOREIGN CAPITAL FOREIGN INVESTORS FOREIGN MARKETS GOVERNMENT BONDS GOVERNMENT GUARANTEES INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL MARKETS ISSUANCE LENDERS LOAN LOAN MARKET LOAN MARKETS LOCAL BANKS LOCAL INVESTORS LOCAL MARKETS REAL INTEREST REAL INTEREST RATE RISK AVERSION SECURITIES MARKETS SOVEREIGN GUARANTEES SOVEREIGN ISSUES SPREAD ACCESS TO CAPITAL ACCESS TO CAPITAL MARKETS ACCESS TO FOREIGN MARKETS ACCESS TO MARKETS AMOUNT OF CAPITAL BANKING SECTOR BANKING SYSTEM BONDS CAPITAL MARKETS CAPITAL RAISING CORPORATIONS CREDIT CONSTRAINTS DEBT DEBT ISSUES DEVELOPING COUNTRIES DOMESTIC BANKING DOMESTIC CAPITAL DOMESTIC CAPITAL MARKETS DOMESTIC MARKETS EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS EQUITY SECURITIES FINANCIAL CRISIS FIRMS FOREIGN CAPITAL FOREIGN INVESTORS FOREIGN MARKETS GOVERNMENT BONDS GOVERNMENT GUARANTEES INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL MARKETS ISSUANCE LENDERS LOAN LOAN MARKET LOAN MARKETS LOCAL BANKS LOCAL INVESTORS LOCAL MARKETS REAL INTEREST REAL INTEREST RATE RISK AVERSION SECURITIES MARKETS SOVEREIGN GUARANTEES SOVEREIGN ISSUES SPREAD Didier, Tatiana Patterns of Financing During Periods of High Risk Aversion : How Have Latin Firms Fared in this Crisis So Far? |
| description |
This note examines the extent to which
firms in Latin America have been able to raise capital
through debt and equity securities as well as syndicated
loans, both abroad and domestically, since the onset of the
2008 global financial crisis. The public and the private
sectors alike lost access to foreign sources of financing
during the height of the turbulence. Furthermore, two months
after the Lehman Brothers' collapse, only government
owned firms and governments themselves were able to re-enter
international markets to some extent and raise capital.
Thus, the evidence suggests an important role for government
guarantees in attracting foreign investors in times of high
risk aversion. In domestic and syndicated loan markets,
there has been a marked decrease in the total amount raised,
although they have remained a viable option for the private
sector in Latin America. To the extent possible,
non-government borrowers have been able to raise capital in
these markets and have generally met their rollover needs.
In contrast, the role of sovereign guarantees in attracting
local investors seems to have been more important in Eastern
Europe and Southeast Asia, where government entities have
accounted for respectively 80 and 44 percent of all new
issues in local markets, compared to less than 15 percent in LAC. |
| topic_facet |
ACCESS TO CAPITAL ACCESS TO CAPITAL MARKETS ACCESS TO FOREIGN MARKETS ACCESS TO MARKETS AMOUNT OF CAPITAL BANKING SECTOR BANKING SYSTEM BONDS CAPITAL MARKETS CAPITAL RAISING CORPORATIONS CREDIT CONSTRAINTS DEBT DEBT ISSUES DEVELOPING COUNTRIES DOMESTIC BANKING DOMESTIC CAPITAL DOMESTIC CAPITAL MARKETS DOMESTIC MARKETS EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS EQUITY SECURITIES FINANCIAL CRISIS FIRMS FOREIGN CAPITAL FOREIGN INVESTORS FOREIGN MARKETS GOVERNMENT BONDS GOVERNMENT GUARANTEES INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL FINANCIAL MARKETS INTERNATIONAL MARKETS ISSUANCE LENDERS LOAN LOAN MARKET LOAN MARKETS LOCAL BANKS LOCAL INVESTORS LOCAL MARKETS REAL INTEREST REAL INTEREST RATE RISK AVERSION SECURITIES MARKETS SOVEREIGN GUARANTEES SOVEREIGN ISSUES SPREAD |
| author |
Didier, Tatiana |
| author_facet |
Didier, Tatiana |
| author_sort |
Didier, Tatiana |
| title |
Patterns of Financing During Periods of High Risk Aversion : How Have Latin Firms Fared in this Crisis So Far? |
| title_short |
Patterns of Financing During Periods of High Risk Aversion : How Have Latin Firms Fared in this Crisis So Far? |
| title_full |
Patterns of Financing During Periods of High Risk Aversion : How Have Latin Firms Fared in this Crisis So Far? |
| title_fullStr |
Patterns of Financing During Periods of High Risk Aversion : How Have Latin Firms Fared in this Crisis So Far? |
| title_full_unstemmed |
Patterns of Financing During Periods of High Risk Aversion : How Have Latin Firms Fared in this Crisis So Far? |
| title_sort |
patterns of financing during periods of high risk aversion : how have latin firms fared in this crisis so far? |
| publisher |
World Bank, Washington, DC |
| publishDate |
2009-05 |
| url |
http://documents.worldbank.org/curated/en/2009/05/11955070/patterns-financing-during-periods-high-risk-aversion-latin-firms-fared-crisis-so-far https://hdl.handle.net/10986/10985 |
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AT didiertatiana patternsoffinancingduringperiodsofhighriskaversionhowhavelatinfirmsfaredinthiscrisissofar |
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1807157357735575552 |