Bonds and syndicated loans during the Covid-19 crisis: decoupled again?

Tirupam Goel and Jose Maria Serena Garralda

No 29, BIS Bulletins from Bank for International Settlements

Abstract: Borrowing by non-financial firms in global debt markets surged following the Covid-19 shock. Bond issuance boomed, while syndicated loan originations trailed. Led by easier access to bond markets, large firms significantly increased their borrowing. The rest of the firms faced bottlenecks due to their reliance on a strained syndicated loan market and hurdles in switching to bond markets. Large firms, which had lower cash buffers pre-crisis than smaller firms, used part of the fresh credit to raise their buffers in addition to meeting liquidity shortfalls.

Pages: 9 pages
Date: 2020-08-14
New Economics Papers: this item is included in nep-ban and nep-fmk
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Citations: View citations in EconPapers (8)

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