Non-financial Corporate Risk Management and Exchange Rate Volatility in Latin America PDF Download
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Author: Graciela Moguillansky
Publisher:
ISBN:
Category : Capital movements
Languages : en
Pages : 30
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Book Description
Author: Graciela Moguillansky
Publisher:
ISBN:
Category : Capital movements
Languages : en
Pages : 30
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Book Description
Author: Graciela Moguillansky
Publisher: Santiago : ECLAC, Office of the Executive Secretary
ISBN: 9789211213966
Category : Political Science
Languages : en
Pages : 35
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Book Description
Author: Carlos Caceres
Publisher: International Monetary Fund
ISBN: 1484321545
Category : Business & Economics
Languages : en
Pages : 34
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Book Description
This paper analyzes the potential risks and vulnerabilities of non-financial corporates in Latin America and Canada. We quantify the impact of company-specific, countryspecific, and global factors in driving corporate spreads. Overall, we found that all these factors play a role in explaining corporate risk. In particular, country specific factors such as exchange rate and sovereign CDS spreads are significantly associated with changes in corporate spreads, underscoring the importance of solid policy frameworks. We also find that global conditions, such as the VIX, are dominant drivers of corporate spreads. In recent years, the adverse effects from deteriorating domestic conditions have been broadly offset by relatively bening global financial conditions. However, a sustained reversal in these conditions would put significant pressure on corporate risk.
Author: George Allayannis
Publisher: World Bank Publications
ISBN:
Category : Debts, External
Languages : en
Pages : 50
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Book Description
In a large sample of East Asian nonfinancial corporations, firms using foreign currency derivatives had distinctive characteristics, such as larger size and foreign debt exposures. Unlike in studies of U.S. firms, there was only weak evidence that liquidity-constrained firms with greater growth opportunities hedged more. Firms appeared to use foreign earnings as a substitute for hedging with derivatives, and to engage in "selective" hedging. There was no evidence that East Asian firms eliminated their foreign exchange exposure by using derivatives. And firms using derivatives before the crisis performed just as poorly as nonhedgers during the crisis.
Author: Group of Thirty
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 158
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Book Description
Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1462350623
Category : Business & Economics
Languages : en
Pages : 115
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Book Description
This paper reviews policy tools that have been used and/or are available for policy makers in the region to lean against the wind and review relevant country experiences using them. The instruments examined include: (i) capital requirements, dynamic provisioning, and leverage ratios; (ii) liquidity requirements; (iii) debt-to-income ratios; (iv) loan-to-value ratios; (v) reserve requirements on bank liabilities (deposits and nondeposits); (vi) instruments to manage and limit systemic foreign exchange risk; and, finally, (vii) reserve requirements or taxes on capital inflows. Although the instruments analyzed are mainly microprudential in nature, appropriately calibrated over the financial cycle they may serve for macroprudential purposes.
Author: Mr.Fabiano Rodrigues Rodrigues Bastos
Publisher: International Monetary Fund
ISBN: 1498372791
Category : Business & Economics
Languages : en
Pages : 31
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Book Description
Easy global liquidity conditions, stronger risk appetite and a retrenchment in cross-border bank lending led to a surge in emerging market firms’ bond issuance in international markets (what we term “The Bon(d)anza”). Using firm-level data for five large Latin American economies, we provide evidence of a significant change in companies’ external funding strategies and liability structures after 2010, as well as in the balance sheet risks that firms face. We find that stepped up bond issuance was mostly aimed at re-financing rather than funding investment projects, as firms extended the average duration of their debt while securing lower fixed-rates, reducing roll-over and interest rate risks. The shift towards safer maturity structures has come at the expense of a leveraging-up in foreign-currency-denominated financial debt in several countries— reversing a de-dollarization trend seen during the last decade. We also provide evidence that a substantial part of these bonds were issued through offshore vehicles, suggesting regulatory and tax arbitrage strategies. For some corporations, rising dollar debt and high leverage will be particularly taxing in an environment of US dollar strengthening, less buoyant commodity prices and slowing domestic activity.
Author: Fabiàn De Achàval Muñoz
Publisher:
ISBN:
Category :
Languages : en
Pages : 249
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Book Description
This thesis is a collection of four essays on exchange rate policies, macroeconomic volatility and inequality in Latin America. Known to be a currency crises-prone region, Latin America is also highly volatile and the most unequal region of the world. On the other hand, and perhaps as a consequence of the above, these economies exhibit strong market failures. My research takes into account these factors in order to determine if there is a rationale for the intervention of the government in the economy be it for the sake of economic optimality or for social considerations. This research is divided in two parts. The first part focuses on optimal monetary policy in emerging markets in the light of two main economic characteristics of these economies: the currency mismatch and a high inflation pass-through. The first chapter addresses the theoretical foundations of the "fear of floating" which has been observed to characterize Latin American economies' exchange rate regimes. We show that the literature has identified circumstances under which optimal monetary policy limits exchange rate volatility. The second chapter assesses the trade-off faced by developing economies in the light of exchange rate pass-through and a non-Walrasian labor market from an optimal monetary policy perspective. The second part analyses the effects of macroeconomic volatility on inequality. The third charter reviews the literature both theoretically and empirically. Finally, the fourth chapter examines in a three-agents model the role on the informal sector to explain the link between volatility and inequality. We show that this new channel may challenge the conventional wisdom and that the poor are not necessarily worst-off.
Author: R. Ffrench-Davis
Publisher: Springer
ISBN: 1403990093
Category : Business & Economics
Languages : en
Pages : 354
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Book Description
This book analyzes the new trends in capital flows to emerging markets since the Asian crisis, their determinants and policy implications. It explains why such flows have declined so dramatically in recent years, emphasising both structural and cyclical factors. Senior bankers, regulators, and well-known academics explain the behaviour of different players. The book breaks new ground by showing in detail how such behaviour has contributed to the decline of flows and their volatility. The book suggests what coping mechanisms developing countries could adopt to deal with crisis situations; what measures should be taken at the national and international levels to make recipient countries less vulnerable to international financial instability; how such instability can be reduced; and what can be done on the source countries to encourage larger more stable capital flows to developing countries.
Author: José A. Soler Ramos
Publisher: IDB
ISBN: 9781886938717
Category : Business & Economics
Languages : en
Pages : 422
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Book Description
"Drawing on practical methods used by successful risk managers in emerging and developed markets throughout the world, the book provides specific guidance on establishing a modern risk management framework and developing efficient approaches to increase the profitability of risk management activities in emerging market settings."--BOOK JACKET.
