“Original Sin” and Offshore Corporate Bond Issuance by Dr. Eli RemolonaOctober 29, 2018
On October 9, 2018, Dr. Eli Remolona, BIS’s Chief Representative for Asia and the Pacific, gave students an opportunity to deepen their understanding on issues of corporate bond market development in Asia. In the larger emerging economies of Asia, the onshore corporate bond markets have lagged far behind the government bond markets. These corporate markets have tended to be unwelcoming to new issuers with relatively low levels of credit quality. Dr. Remolona shared his findings based on the analysis of 5,500 financing decisions by firms in seven Asian emerging markets over a period of 11 years. In the countries with less developed onshore markets, it is the unseasoned issuers that tended to suffer from original sin and therefore it was often easier for them to issue offshore than to issue onshore.
Over 20 students joined the seminar to learn about current issues on financial market development in Asia. Since BIS acting as a bank for central banks, a group of GraSPP students from central banks joined Dr. Eli Remolona for a photo following the seminar.
To download the presentation, HERE.