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

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Staff Reports

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

Previous title: “The Good, the Bad, and the Ugly of International Debt Market Data”

Number 1074
October 2023 Revised December 2024

JEL classification: G15, F23, F30, G12, G30

Authors: Nina Boyarchenko and Leonardo Elias

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.

Full Article

Author Disclosure Statement(s)

Nina Boyarchenko
The author declares that she has no relevant or material financial interests that relate to the research described in this paper. Prior to circulation, this paper was reviewed in accordance with the Federal Reserve Bank of New York review policy, available at https://www.newyorkfed.org/research/staff_reports/index.html.

Leonardo Elias
The author declares that he has no relevant or material financial interests that relate to the research described in this paper. Prior to circulation, this paper was reviewed in accordance with the Federal Reserve Bank of New York review policy, available at https://www.newyorkfed.org/research/staff_reports/index.html.

Suggested Citation:
Boyarchenko, Nina and Leonardo Elias. 2023. “Corporate Credit Conditions Around the World: Novel Facts Through Holistic Data.” Federal Reserve Bank of New York Staff Reports, no. 1074, October. https://doi.org/10.59576/sr.1074

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