This seminar will present two related papers on corporate bond and syndicated loan financing and maturity in developed and developing countries during 1991-2016. The first paper studies whether firms from developing countries borrow shorter term than those from developed countries. The second paper studies how crises impact corporate debt financing and maturity. Contrary to what many expect, firms from developing countries borrow at similar maturities than those from developed ones. This is partly explained by large firms borrowing in international bond markets and by firms borrowing domestically from banks for infrastructure projects, both involving longer-term financing. During crises, the largest firms switch from the most affected markets (typically bank loans) to the less affected domestic or international markets. Consequently, overall debt maturity remains stable for those firms and for the overall countries. But smaller firms that do not switch experience shorter borrowing maturities, declining financing, and crowding out effects.
