NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Pricing of Bonds and Bank Loans in International Markets: An Empirical Analysis of Developing Countries' Foreign Borrowing

Sebastian Edwards

NBER Working Paper No. 1689 (Also Reprint No. r0762)
Issued in August 1985
NBER Program(s):   ITI   IFM

The purpose of this paper is to compare the pricing of bank loans and bonds in international markets. The results obtained, using data on LDC debtors, indicate that in both markets the country risk premium has responded to some of the variables suggested by the theory. However, the way in which these variables affect the risk premium differs across these markets. Data on LDC bond yields in the secondary market for 1980-85 are also used to analyze the way in which this market reacted and anticipated the debt crisis.

download in pdf format
   (468 K)

download in djvu format
   (341 K)

email paper

This paper is available as PDF (468 K) or DjVu (341 K) (Download viewer) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w1689

Published: Edwards, Sebastian. "The Pricing of Bonds and Bank Loans in International Markets: An Empirical Analysis of Developing Countries' Foreign Borrowing," European Economic Review, Vol. 30, No. 3, (June 1986), pp. 565-589. citation courtesy of

Users who downloaded this paper also downloaded these:
Eichengreen and Mody w6408 What Explains Changing Spreads on Emerging-Market Debt: Fundamentals or Market Sentiment?
Edwards w1172 LDC's Foreign Borrowing and Default Risk: An Empirical Investigation
Eichengreen and Mody What Explains Changing Spreads on Emerging Market Debt?
Sachs and Cohen w0925 LDC Borrowing with Default Risk
Eichengreen and Mody w7113 Lending Booms, Reserves, and the Sustainability of Short-Term Debt: Inferences from the Pricing of Syndicated Bank Loans
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us