The Long and the Short of Emerging Market Debt

Opazo, Luis; Raddatz, Claudio; Schmukler, Sergio L.

dc.creator	Opazo, Luis
dc.creator	Raddatz, Claudio
dc.creator	Schmukler, Sergio L.
dc.date	2012-03-19T19:12:33Z
dc.date	2012-03-19T19:12:33Z
dc.date	2009-09-01
dc.date.accessioned	2023-02-18T19:37:25Z
dc.date.available	2023-02-18T19:37:25Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090916132644
dc.identifier	http://hdl.handle.net/10986/4247
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/249747
dc.description	Emerging economies have tried to promote long-term debt because it reduces maturity mismatches and the probability of crises. This paper uses unique evidence from the leading case of Chile to study to what extent there is domestic demand for long-term instruments. The authors analyze monthly asset-level portfolios of Chilean institutional investors (mutual funds, pension funds, and insurance companies) and compare their maturity structure to that of US bond mutual funds. Despite being thought to invest long term, Chilean asset-management institutions (mutual and pension funds) hold large amounts of short-term assets relative to US mutual funds and Chilean insurance companies. Short-termism is not driven by lack of instrument availability or tactical behavior. Instead, it seems to be explained by the desire to minimize inflation risk and, more importantly, by manager incentives that tilt demand toward short-term instruments. Extending the maturity of emerging market debt may require reducing risk and reshaping investor incentives.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5056
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ACCOUNTING
dc.subject	ARBITRAGE
dc.subject	ASSET CLASS
dc.subject	ASSET CLASSES
dc.subject	ASSET HOLDINGS
dc.subject	ASSET MANAGEMENT
dc.subject	ASSET MANAGERS
dc.subject	ASSET PRICES
dc.subject	ASSET-LIABILITY MANAGEMENT
dc.subject	BACKED SECURITIES
dc.subject	BAILOUT
dc.subject	BANK DEPOSITS
dc.subject	BANK POLICY
dc.subject	BANKING CRISIS
dc.subject	BANKING SECTOR
dc.subject	BANKING SYSTEM
dc.subject	BID
dc.subject	BOND
dc.subject	BOND FUNDS
dc.subject	BOND MARKETS
dc.subject	BONDS
dc.subject	BORROWER
dc.subject	CAPITAL FLOWS
dc.subject	CAPITAL MARKET
dc.subject	CAPITAL MARKET DEVELOPMENT
dc.subject	CAPITAL MARKETS
dc.subject	CASH WITHDRAWALS
dc.subject	CENTRAL BANK
dc.subject	COMPARABLE MATURITY
dc.subject	CONFLICTS OF INTEREST
dc.subject	CORPORATE BOND
dc.subject	CORPORATE BOND MARKET
dc.subject	CORPORATE BONDS
dc.subject	CORPORATE DEBT
dc.subject	CORPORATE PAPER
dc.subject	CORPORATE PERFORMANCE
dc.subject	CREDIT RATING
dc.subject	CREDITORS
dc.subject	CRISES IN EMERGING MARKETS
dc.subject	DATA AVAILABILITY
dc.subject	DEBT BURDEN
dc.subject	DEBT HOLDINGS
dc.subject	DEBT INSTRUMENTS
dc.subject	DEBT ISSUANCES
dc.subject	DEBT MANAGEMENT
dc.subject	DEBT MATURITIES
dc.subject	DEBT MATURITY
dc.subject	DEBTORS
dc.subject	DEREGULATION
dc.subject	DEVELOPING COUNTRIES
dc.subject	DEVELOPING ECONOMIES
dc.subject	DEVELOPMENT BANK
dc.subject	DIFFERENT CURRENCIES
dc.subject	DIFFERENT CURRENCY
dc.subject	DOLLAR DEBT
dc.subject	DOMESTIC BOND
dc.subject	DOMESTIC BONDS
dc.subject	DOMESTIC INSTITUTIONAL INVESTORS
dc.subject	DOMESTIC SECURITIES
dc.subject	EMERGING ECONOMIES
dc.subject	EMERGING MARKET
dc.subject	EMERGING MARKET ASSETS
dc.subject	EMERGING MARKET DEBT
dc.subject	EMERGING MARKET GOVERNMENTS
dc.subject	EMERGING MARKET INVESTORS
dc.subject	EMERGING MARKETS
dc.subject	EXCHANGE RATES
dc.subject	FEDERAL RESERVE
dc.subject	FEDERAL RESERVE BANK
dc.subject	FINANCIAL CONTRACTS
dc.subject	FINANCIAL CRISES
dc.subject	FINANCIAL CRISIS
dc.subject	FINANCIAL DEVELOPMENT
dc.subject	FINANCIAL FRAGILITY
dc.subject	FINANCIAL INSTITUTIONS
dc.subject	FINANCIAL INSTRUMENTS
dc.subject	FINANCIAL SYSTEM
dc.subject	FOREIGN ASSETS
dc.subject	FOREIGN DIRECT INVESTMENT
dc.subject	FOREIGN FUNDS
dc.subject	FOREIGN INVESTMENT
dc.subject	FUND DATA
dc.subject	FUND MANAGERS
dc.subject	FUND PERIOD
dc.subject	FUND PERIODS
dc.subject	GLOBAL FINANCE
dc.subject	GLOBALIZATION
dc.subject	GOVERNMENT BONDS
dc.subject	GOVERNMENT PAPER
dc.subject	GOVERNMENT SECURITIES
dc.subject	HEDGES
dc.subject	HOLDING
dc.subject	HOLDINGS
dc.subject	HOLDINGS OF BANK
dc.subject	INCENTIVE STRUCTURE
dc.subject	INCOME
dc.subject	INDEXED BONDS
dc.subject	INFLATION
dc.subject	INFLATION MOVEMENTS
dc.subject	INFLATION RISK
dc.subject	INFLATION RISKS
dc.subject	INFLATION VOLATILITY
dc.subject	INSTITUTIONAL INVESTOR
dc.subject	INSTITUTIONAL INVESTORS
dc.subject	INSTRUMENT
dc.subject	INSURANCE
dc.subject	INSURANCE COMPANIES
dc.subject	INTERNATIONAL BANK
dc.subject	INTERNATIONAL ECONOMICS
dc.subject	INTERNATIONAL FINANCE
dc.subject	INTERNATIONAL FINANCIAL MARKETS
dc.subject	INVESTING
dc.subject	INVESTMENT HORIZON
dc.subject	INVESTMENT HORIZONS
dc.subject	INVESTMENT INSTRUMENTS
dc.subject	INVESTMENT OPPORTUNITIES
dc.subject	INVESTMENT VEHICLES
dc.subject	INVESTOR BASE
dc.subject	INVESTOR BEHAVIOR
dc.subject	INVESTOR DEMAND
dc.subject	INVESTOR INCENTIVES
dc.subject	INVESTOR REDEMPTIONS
dc.subject	ISSUANCE
dc.subject	ISSUANCES
dc.subject	LENDER
dc.subject	LENDER OF LAST RESORT
dc.subject	LEVEL OF CONFIDENCE
dc.subject	LEVY
dc.subject	LIABILITY
dc.subject	LIFE INSURANCE
dc.subject	LIQUID ASSETS
dc.subject	LIQUIDATIONS
dc.subject	LIQUIDITY
dc.subject	LIQUIDITY CRISES
dc.subject	LOCAL CURRENCY
dc.subject	LONG-TERM ASSETS
dc.subject	LONG-TERM CAPITAL
dc.subject	LONG-TERM DEBT
dc.subject	LONG-TERM FUNDS
dc.subject	LONG-TERM INSTRUMENTS
dc.subject	LONG-TERM INVESTMENTS
dc.subject	LONG-TERM INVESTORS
dc.subject	LONG-TERM LENDING
dc.subject	LONG-TERM LIABILITIES
dc.subject	MACROECONOMIC STABILIZATION
dc.subject	MARK-TO-MARKET
dc.subject	MARK-TO-MARKET ACCOUNTING
dc.subject	MARKET CONDITIONS
dc.subject	MARKET DISCIPLINE
dc.subject	MATURITIES
dc.subject	MATURITY
dc.subject	MATURITY DATE
dc.subject	MATURITY MISMATCH
dc.subject	MATURITY MISMATCHES
dc.subject	MATURITY STRUCTURE
dc.subject	MATURITY STRUCTURES
dc.subject	MAXIMUM MATURITY
dc.subject	MORAL HAZARD
dc.subject	MORTGAGE
dc.subject	MUTUAL FUND
dc.subject	MUTUAL FUND INDUSTRIES
dc.subject	MUTUAL FUND INVESTORS
dc.subject	MUTUAL FUND MANAGERS
dc.subject	MUTUAL FUND SHARES
dc.subject	MUTUAL FUND STRATEGIES
dc.subject	MUTUAL FUNDS
dc.subject	OPEN-END FUNDS
dc.subject	OPPORTUNITY COST
dc.subject	OPTIMAL PORTFOLIO
dc.subject	OUTSTANDING DEBT
dc.subject	PENSION
dc.subject	PENSION FUND
dc.subject	PENSION FUNDS
dc.subject	PENSION SYSTEM
dc.subject	PENSION SYSTEMS
dc.subject	PENSIONS
dc.subject	PORTFOLIO
dc.subject	PORTFOLIO ALLOCATION
dc.subject	PORTFOLIO CHOICE
dc.subject	PORTFOLIO HOLDINGS
dc.subject	PORTFOLIO INVESTMENTS
dc.subject	PORTFOLIO MANAGEMENT
dc.subject	PORTFOLIO REGULATIONS
dc.subject	PORTFOLIOS
dc.subject	PRICE RISK
dc.subject	PROBABILITY
dc.subject	PUBLIC DEBT
dc.subject	REGULATORY CONSTRAINTS
dc.subject	RESEARCH ASSISTANCE
dc.subject	RETURN
dc.subject	RETURNS
dc.subject	RISK AVERSION
dc.subject	RISK MANAGEMENT
dc.subject	RISK PREMIUM
dc.subject	RISK PROFILE
dc.subject	RISK PROFILES
dc.subject	RISK REDUCTION
dc.subject	SECURITIES
dc.subject	SHARE OF ASSETS
dc.subject	SHORT MATURITIES
dc.subject	SHORT-TERM ASSET
dc.subject	SHORT-TERM ASSETS
dc.subject	SHORT-TERM BOND
dc.subject	SHORT-TERM BONDS
dc.subject	SHORT-TERM BORROWING
dc.subject	SHORT-TERM CAPITAL
dc.subject	SHORT-TERM DEBT
dc.subject	SHORT-TERM INSTRUMENTS
dc.subject	SOVEREIGN BONDS
dc.subject	SOVEREIGN DEBT
dc.subject	STOCK MARKET
dc.subject	STOCK MARKET COLLAPSES
dc.subject	STOCKS
dc.subject	SYSTEMIC RISK
dc.subject	TERM CONTRACTS
dc.subject	TYPE OF INVESTOR
dc.subject	TYPES OF INSTRUMENTS
dc.subject	VOLATILITY
dc.title	The Long and the Short of Emerging Market Debt
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	Latin America & Caribbean
dc.coverage	Latin America & Caribbean
dc.coverage	South America
dc.coverage	America
dc.coverage	Chile