Corporate bond financing of Italian non-financial firms

Giorgio Meucci () and Fabio Parlapiano
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Giorgio Meucci: Bank of Italy

No 655, Questioni di Economia e Finanza (Occasional Papers) from Bank of Italy, Economic Research and International Relations Area

Abstract: This work analyses the main trends in bond financing by Italian non-financial firms and its role in relation to bank credit across different economic phases. The first part of the analysis refers to the 2008-2019 period, characterized by both crisis and recovery episodes, while the second part focuses on the specific effects of the recent pandemic crisis. The corporate bond market experienced substantial growth over the years, with an increasing number and more diverse types of issuers tapping the market. At the same time, not all crises episodes have had similar effects for bond financing. The 2008 and 2012 crises encouraged non-financial firms, especially the larger ones, to use bond instruments as an alternative to (rationed) bank credit, highlighting substitutability between market and bank-based financing channels. Instead, during the 2020 pandemic crisis, both bond issuances and bank credit expanded at unprecedentedly high rates, highlighting complementarities.

Keywords: non-performing loans; firm distress; firm recovery (search for similar items in EconPapers)
JEL-codes: G1 G3 G32 (search for similar items in EconPapers)
Date: 2021-11
New Economics Papers: this item is included in nep-ban, nep-cfn, nep-cwa and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:bdi:opques:qef_655_21

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