Bond Markets in Latin America: On the Verge of a Big Bang?
Bond Markets in Latin America: On the Verge of a Big Bang?
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Abstract
Developing local bond markets is high on the policy agenda of Latin America. Bond markets are an essential component of a well-functioning financial market. Facilitating the efforts of public and private borrowers to issue domestic-currency-denominated, long-term, fixed-rate bonds insulates them from the rollover and balance sheet risks that have been central elements in past financial crises. In addition, a robust bond market is a way for nonfinancial firms to retain their capacity to borrow when the banking system grows reluctant to lend. Latin American bond markets are growing, and may even approach a “big bang”-like surge, although significant challenges remain. This comprehensive examination of the importance of local bond market development in Latin America provides conceptual and comparative assessments, case studies of six countries, surveys of firms and investors, and a cross-country economic analysis of the determinants of bond market development. The book’s case studies of Argentina, Brazil, Chile, Colombia, Mexico, and Uruguay, written by country experts, follow a common methodology, with each offering a history of that country’s bond market development, a comprehensive and unique data set on both private and public bond markets, surveys of firms and investors, and (in many chapters) firm-level analysis. A Web appendix makes available the unique data sets, including results of specially designed surveys of firms and investors participants, used in the book’s studies.
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Front Matter
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1
Building Bond Markets in Latin America
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2
How Can Emerging Market Economies Benefit from a Corporate Bond Market?
Patrick Bolton andXavier Freixas
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3
Development of the Mexican Bond Market
Sara G. Castellanos andLorenza Martinez
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4
Corporate Bond Markets in Argentina
Roque B. Fernández and others
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5
Development of Colombian Bond Markets
Camila Aguilar and others
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6
Development of the Chilean Corporate Bond Market
Matías Braun andIgnacio Briones
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7
Development of the Brazilian Bond Market
Ricardo P. C. Leal andAndre L. Carvalhal-da-Silva
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8
The Fixed-Income Market in Uruguay
Julio de Brun and others
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9
Prospects for Latin American Bond Markets: A Cross-Country View
Barry Eichengreen and others
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End Matter
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