By Eduardo Borensztein, Kevin Cowan, Barry Eichengreen, Ugo Panizza
Developing neighborhood bond markets is excessive at the coverage time table of Latin the USA. Bond markets are an integral part of a well-functioning monetary marketplace. Facilitating the efforts of private and non-private debtors to factor domestic-currency-denominated, long term, fixed-rate bonds insulates them from the rollover and stability sheet dangers which were primary parts in previous monetary crises. additionally, a powerful bond industry is a manner for nonfinancial corporations to continue their ability to borrow while the banking approach grows reluctant to lend. Latin American bond markets are transforming into, and will even method a "big bang"-like surge, even if major demanding situations stay. this primary complete exam of the significance of neighborhood bond marketplace improvement in Latin the US presents conceptual and comparative exams, case experiences of six nations, surveys of organisations and traders, and a cross-country financial research of the determinants of bond industry improvement. The book's case reviews of Argentina, Brazil, Chile, Colombia, Mexico, and Uruguay, written through state specialists, persist with a standard method, with every one providing a background of that country's bond industry improvement, a accomplished and certain info set on either deepest and public bond markets, surveys of organisations and traders, and (in many chapters) firm-level research. an internet appendix makes to be had the original info units, together with result of specifically designed surveys of agencies and traders individuals, utilized in the book's studies.
Contributors: Camila Aguilar, Patrick Bolton, Eduardo Borensztein, Matías Braun, Ignacio Briones, Mauricio Cárdenas, Andre L. Carvalhal da Silva, Sara G. Castellanos, Kevin Cowan, Julio de Brun, Barry Eichengreen, Roque B. Fernández, Xavier Freixas, Néstor Gandelman, Herman Kamil, Ricardo P. C. Leal, Lorenza Martínez, Marcela Meléndez, Ugo Panizza, Sergio Pernice, Arturo C. Porzecanski, Natalia Salazar, Jorge Streb
Read or Download Bond Markets in Latin America: On the Verge of a Big Bang? (MIT Press) PDF
Best central america books
Part-time Guatemala resident Al Argueta offers tourists with an insider’s view of Guatemala’s top, from idyllic surf spots to renowned volcanoes. Argueta bargains in-depth insurance of Lake Atitlan and l. a. Antigua, in addition to Guatemala City’s assorted collection of museums. With professional suggestion on the place to consume, sleep, sit back, and discover, Moon Guatemala offers tourists the instruments they should create a extra own and noteworthy event.
Drawing on tales from contra collaborators and ex-combatants, in addition to pro-Sandinista peasants, this booklet offers a dynamic account of the turning out to be divisions among peasants from the realm of Quilalí who took up hands in safety of innovative courses and beliefs comparable to land reform and equality and people who hostile the FSLN.
Exploring the cultural lives of African slaves within the early colonial Portuguese international, with an emphasis at the a couple of million principal Africans who survived the adventure to Brazil, James candy lifts a curtain on their lives as Africans instead of as incipient Brazilians. Focusing first at the cultures of important Africa from which the slaves came--Ndembu, Imbangala, Kongo, and others--Sweet identifies particular cultural rites and ideology that survived their transplantation to the African-Portuguese diaspora, arguing that they didn't fall down to rapid creolization within the New global yet remained noticeably African for your time.
Victoria Day-Wilson has all of the perception and information on settling down in Belize—she's made the flow there herself. In Moon residing out of the country in Belize, she bargains easy, an expert suggestion on how businesspeople, scholars, academics, retirees, and execs could make a soft transition to residing during this more and more renowned vacation spot.
- Chile: The Making of a Republic, 1830–1865: Politics and Ideas (Cambridge Latin American Studies)
- Frommer's Nicaragua and El Salvador (Frommer's Complete Guides)
- The Blood of Guatemala: A History of Race and Nation (Latin America Otherwise)
- Dependency and Development in Latin America
Extra resources for Bond Markets in Latin America: On the Verge of a Big Bang? (MIT Press)
Unlike bank ﬁnancing, which creates a source of endogenous fragility due to the asset-liability mismatch, bond ﬁnancing as a form of long-term ﬁnance does not expose ﬁrms to the same risks of bank runs and systemic crises. This is, in our view, the main beneﬁt of bond ﬁnancing in EMEs. By isolating ﬁrms from government debt defaults, bond ﬁnancing provides a ‘‘spare tire’’ to ﬁrms and thus reduces the amplitude of the crisis that inevitably follows a government debt default. However, as we have stressed in our earlier writing (Bolton and Freixas 2000, 2005), bond ﬁnancing is inherently less ﬂexible and may result in higher costs of ﬁnancial distress.
For the purposes of our analysis, however, we shall not focus on this particular issue. Instead, our main focus is that the key missing characteristic of an EME’s ﬁnancial system in the existing literature is the absence of any form of government debt default risk. In Bolton and Freixas (2006) we have developed a more general model of the equilibrium mix of bank and market ﬁnancing than is available in the existing literature, incorporating the possibility of default by the EME’s government on its debt.
In addition, to keep the analysis tractable, we assume that households are risk-neutral and are therefore indifferent as to how they allocate their savings among bank deposit accounts, bonds issued by ﬁrms, or government bonds, as long as all these instruments provide the same expected return. The assumption of risk-neutrality is a strong one, and the full policy implications of the development of corporate bond markets may not be identiﬁed in a model based on risk-neutral preferences. As we shall discuss below, however, it is likely that the beneﬁts of developing a corporate bond market are even higher when one takes into account the added risk-diversiﬁcation beneﬁts.