Accounting and Finance research seminar series
When:
—
Venue:
Birkbeck Central
As part of the Accounting and Finance seminar series, this Friday 21 February at 12 pm UK time, we will host a hybrid research seminar delivered by Professor Bonnie Buchanan from the University of Surrey. This research talk will take place in Birkbeck Central 311 and will also be available online via Teams.
Professor Bonnie Buchanan’s presentation topic is "Global Bonds Redux: An Emerging Market Perspective."
Everyone is welcome to join us in BCB311 or online this coming Friday.
Bio:
Professor Bonnie Buchanan is the Director of the Sustainable and Explainable FinTech (SAEF) Center at the Surrey Business School (SBS). She is a Chaired Professor of Finance and is also a fellow of the University of Surrey's Center of Sustainability, the Center for AI and the Centre of Digital Economy (CoDE). Bonnie is also the Immediate Past Head of the Department of Finance and Accounting. In 2018-2019, Professor Buchanan served as the USA Fulbright-Hanken Distinguished Chair of Business and Economics at the Hanken School of Economics, Finland. Prior to this, Professor Buchanan worked at Seattle University, USA. Bonnie has also held visiting positions at the University of Georgia, the Bank of Finland and the UK Financial Conduct Authority. Professor Buchanan has also taught in Australia, Russia and Finland. Bonnie graduated with a PhD in Finance from the University of Georgia. She has research expertise in FinTech, AI in financial services, securitization, CSR, financial history and law and finance. Professor Buchanan also appears in the media on FinTech, big data and AI issues.
Abstract
A global bond, first introduced in 1989 by the World Bank, is a debt instrument that is registered, underwritten, and traded simultaneously in international bond markets, allowing borrowers to tap large external funding sources. In this paper, we examine the evolution of the global bond market between 1989 and 2023. We find that global bonds are more likely to be issued by borrowers from countries with higher GDP and greater financial development, with inaugural issuances linked to improving economic conditions and increasing financial development leading to a higher share of global bonds in subsequent years. For debt issuers, we find that global bonds have lower borrowing costs (yield spreads) and underwriting costs (gross spreads) relative to Eurobonds and foreign bonds. In addition, we find that emerging market borrowers achieve a greater cost reduction than their advanced economy counterparts through global bonds. Furthermore, we find that after the global financial crisis, borrowing cost differences between global bonds and Eurobonds become more pronounced. Our results are supported by a series of robustness tests. Overall, our results suggest that global bonds play an important role in providing firms access to debt, emerging markets’ ability to raise capital and financial development.
Contact name:
Ellen Yu