Impact of U.S. Unconventional Monetary Policy on Debt Issuances by Emerging Market Firm


Vidhan Goyal

The objective is to examine the impact of U.S. unconventional monetary policy on debt issuances by firms in emerging market economies. The idea is to examine the Federal Reserve’s maturity extension program and the incentives that created for U.S. investors to search for high-yielding long-dated bonds issued by emerging market firms. Do firms that depend more on long-term debt issue more US dollar corporate bonds during the MEP implementation period relative to other firms that do not depend on long-term debt? In addition, the project tests if firms rated A- issued relatively more debt compared to firms at other rating categories. Finally, the project will examine real outcomes and will test if U.S. monetary policy alleviated financing constraints for some emerging market firms enabling them to increase investments.


This project is funded by the HKUST IEMS Research Grants 2019.   

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