Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/146447
Authors: 
Caballero, Julián
Panizza, Ugo
Powell, Andrew
Year of Publication: 
2016
Series/Report no.: 
IDB Working Paper Series IDB-WP-641
Abstract: 
Recent work suggests non-financial firms have acted like financial intermediaries particularly in emerging economies. This paper corroborates these findings but then asks "why?". The results indicate evidence for carry-trade activities, but they are focused on countries with higher levels of capital controls, particular controls on inflows. There is little evidence for such activities given other potential motives. It is posited that this phenomenon is due more to the reaction of countries in the face of low global interest rates, quantitative easing and strong capital inflows than incomplete markets or the retreat of global banks due to impaired balance sheets or tighter regulations.
Subjects: 
Corporate finance
Bond issuance
Currency mismatch
Carry trade
Capital controls
JEL: 
E51
F30
F33
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by-nc-nd/3.0/igo/legalcode
Document Type: 
Working Paper

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