Bond Markets in Latin America
On the Verge of a Big Bang?
320 pp., 6 x 9 in, 35 figures, 42 tables
- Published: June 13, 2008
- Publisher: The MIT Press
The first comprehensive examination of the importance of local bond market development in Latin America, with conceptual and comparative assessments, case studies of six countries, and new, unique data sets.
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 first 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.
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
This book is a unique tool for understanding how private bond markets have evolved in Latin America after almost two decades of economic reforms. This compilation of essays by top-notch experts explains both the impressive developments of the fixed income markets of the region and the main obstacles they currently face. Given its detailed analysis and its coverage, this volume will become a reference book for academics, practitioners, and policy makers interested in the development of financial markets in emerging markets.
Aldo Musacchio, Harvard Business School