Discussion paper
DP18746 Corporate Credit Conditions Around the World: Novel Facts Through Holistic Data
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.
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