Report

Corporate Credit Conditions Around the World: Novel Facts Through Holistic Data

Abstract: We collect comprehensive granular data on various aspects of firms’ access to credit markets. We document ten facts that show that inferring credit conditions for new debt from those for existing debt – and vice versa – leads to erroneous conclusions. Secondary market spreads are poor proxies of the cost of new debt. Investment grade issuance is driven by firms’ own secondary market spreads, while high yield issuance responds to macroeconomic conditions. Bond issuances overstate changes in firm indebtedness. Emerging market bond and loan borrowing is complementary for firms with access to both markets, but borrowing of loan-only firms appears disconnected.

Keywords: corporate credit conditions; corporate bonds; multinational firms; primary and secondary market spreads; prepayment;

JEL Classification: G15; F23; F30; G12; G30;

https://doi.org/10.59576/sr.1074

Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Staff Reports

Publication Date: 2023-10-01

Number: 1074

Note: Revised December 2024. Previous title: “The Good, the Bad, and the Ugly of International Debt Market Data”