## 10. LA5: Investment Grade Yield Curves for Nonfinancial Companies––Fixed-Rate Dollar Denominated Bonds ## Source details **Canonical URL:** [10. LA5: Investment Grade Yield Curves for Nonfinancial Companies––Fixed-Rate Dollar Denominated Bonds](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2015/_wp1510.pdf) ## Other formats - [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2015/_wp1510.pdf.md) - [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2015/_wp1510.pdf.json) --- ### I. Introduction — context and motivation - Sample and scope: - Micro-level data on bond issuance (Bloomberg, Dealogic) and corporate balance sheets (S&P Capital IQ) for about 1,000 listed non-financial firms between 2003 and 2013 in Brazil, Chile, Colombia, Mexico, and Peru (LA-5). - Macro backdrop: - Global real interest rates low since 2009 amid unconventional monetary policies and strong investor appetite; Latin American issuance supported by stable domestic fundamentals and supportive commodity prices. - Main concerns motivating analysis: - Rapid ramp-up of corporate bond financing, including in external markets, raising risks of overburdening firms with debt—especially foreign-currency debt—if exchange rates rise or external financing tightens. - Potential spillovers to domestic banking systems if firms face repayment difficulties or withdraw deposits. ### II. Main findings — issuance patterns and composition - Aggregate issuance: - Gross bond issuance by NFCs in LA-5 increased from US$ 15 billion in 2003 (approximately 1 percent of the combined GDP) to US$ 77 billion in 2013 (1.8 percent of the combined GDP), totaling US$ 435 billion over 2003–2013. - Country distribution (2003–2013): - Mexico: nearly 42 percent of NFC issuance. - Brazil: 39 percent. - Chile: 12 percent. - Colombia: 4 percent. - Peru: 3 percent. - Placement and nationality vs. residency: - Foreign placements have led the increase since 2009, with Brazil an exception where domestic bonds remain an important driver. - Foreign issuance associated with Brazilian NFCs often occurs through subsidiaries outside Brazil—nationality-based issuance measures can be substantially larger than residency-based ones. - Issuer quality and investor cycles: - Share of issuance by investment-grade NFCs increased significantly since 2009. - Monthly data show fluctuations in share of lower-rated issuers (notably Brazil and Mexico), indicating episodes of exuberance and moderation. - Sectoral patterns: - Sectors linked to exports and commodities (mining, oil and gas) explain a relevant portion of issuance since 2009. - Meaningful issuance also from domestically-oriented sectors (e.g., construction in Brazil and Mexico: approximately US$ 3.5 billion after 2009; Chilean retail: 15 percent of total issuance since 2011). ### III. Data sources and measurement notes - Primary datasets: - Dealogic: issuance-by-issuance cross-sectional database with transaction size, maturity, coupon, currency, placement (foreign vs domestic), yield to maturity, issuer residency and parent nationality. - S&P Capital IQ: balance sheet, income and cash flow statements from end-year reports converted to U.S. dollars using end-of-period exchange rates; used to compute leverage and interest coverage ratios. - Measurement definitions and limitations: - Domestic vs. foreign placement defined by market/place where underwriters auction the security. - Lack of comprehensive, systematic data on firms’ natural hedges (net export proceeds, foreign currency income from multinationals) and FX derivative positions limits precise assessment of un-hedged exchange rate exposures. ### IV. Leverage and debt-service capacity — key metrics and trends - Leverage measures: - Median debt-to-equity ratio: increased in the past 4 years (re-leveraging since 2010) but overall median in 2013 about the same as early 2003. - Net-debt-to-earnings (net debt / EBITDA): shows a more marked increase over the decade, particularly for Brazil and Colombia, indicating debt has outpaced earnings growth. - Liability-to-asset ratio results broadly consistent with debt-to-equity findings. - As of 2013, leverage ranking: Brazil highest, followed by Chile and Mexico; Colombia and Peru lower. - Subsidiaries generally show higher median leverage than parents (except Mexico). - Debt-service capacity and cash buffers: - Median interest coverage ratios (EBITDA / interest payments) have remained broadly stable or improved somewhat over the decade. - Weak tails: subsets of firms—notably parts of Mexican and Brazilian corporate sectors—exhibit lower interest coverage ratios and greater vulnerability. - Cash buffers: in 2013, median firm cash holdings in all LA-5 countries corresponded to twice the amount necessary to cover gross interest payments. - Investment and cash use: - Capital expenditures as a proportion of total debt followed an increasing trend, but most leveraged firms have not shown relatively higher investment rates. - Firms have increased cash holdings significantly; cash holdings are higher among firms with better debt-servicing capacity—suggesting opportunistic issuance to build buffers rather than to fund investment. ### V. Liability structure shifts and maturity profile - Shift away from bank lending toward bond financing: - Term loans as a share of total debt declined among NFCs in LA-5. - Syndicated lending to private nonfinancial companies fell in 2008 and, though generally rising, had not recovered to 2007 levels by the end of the sample. - Maturity and rate profile: - Firms increased issuance across maturity ranges; notable increase in maturities above 8 years. - Firms secured lower interest rates across the yield curve and kept share of floating-rate debt relatively low. - Firms exploited short-term bond issuance at low rates to manage/repay expensive short-term debt and non-debt liabilities. - Use of proceeds: - Funds used for long-term financing, replacing more expensive debt, and opportunistic buffer-building. - Aggregate medians may hide heterogeneity; firm-level issuance histories show ability to place larger volumes at lower interest rates without incurring maturity shortening or floating-rate risk. ### VI. Foreign currency exposures and risks - Rise in foreign-currency debt: - Surge in international bond issuance increased reliance on foreign currency debt, a potential source of vulnerability if Latin American currencies depreciate. - Difficulty of precise assessment: - Full assessment of currency risk requires comparison of net foreign-currency liabilities and net present value of domestic-currency cash flows; lack of granular data on revenues, assets, and FX derivatives complicates such assessment. - Mexico: IMF (2014) provides comprehensive firm-level foreign currency and interest rate exposure data (not reproduced here). - Mitigating factors and caveats: - A portion of foreign issuance is concentrated in sectors with natural foreign-currency hedges (exporters, commodity producers). - Increase in international reserves has partly mitigated aggregate currency exposure, but risks of moral hazard and distorted private sector incentives noted. - Exchange rate flexibility is emphasized as the most efficient incentive for firms to manage currency risk proactively. ### VII. Issuance through foreign subsidiaries — nationality vs residency measurement - Residency-based external debt statistics can understate foreign liabilities linked to a country when firms issue via foreign subsidiaries. - Brazil: - Substantial and growing wedge between nationality-based and residency-based external issuance, particularly after 2009. - Evidence of increased issuance through offshore centers (e.g., Cayman Islands) after tax tightening affecting foreign issuance subject to foreign exchange taxation; issuance reduced after tax loosening between 2010 and 2012. - FDI intercompany loans increased after tax loosening; portfolio and FDI-equity stabilized. - Policy and structural drivers: - Regulatory complexity and foreign exchange legislation may encourage issuance through non-resident subsidiaries. - Alternative explanation: large multinationals headquartered in Brazil use foreign subsidiaries to carry out international operations. - Surveillance implication: - Monitoring consolidated balance sheets and nationality-based measures is important to capture offshore issuance not evident in residency-based BOP statistics. ### VIII. Conclusions and policy implications - Summary assessment: - Bond issuance by NFCs in LA-5 has increased substantially over the past decade, particularly after 2009, enabling firms to raise cheaper funds across maturities without materially increasing floating-rate exposure. - NFC foreign-currency debt has increased; sectoral patterns provide some natural hedges but data gaps prevent comprehensive firm-level currency risk assessment. - No clear evidence of widespread excessive leverage or deterioration in debt-service capacity, but recent re-leveraging and net-debt-to-earnings increases warrant vigilance. - Firms have accumulated cash buffers rather than increasing investment, raising concerns about subdued growth prospects despite cheaper funding. - Key policy messages: - Exchange rate flexibility is critical to incentivize proactive corporate currency risk management. - Authorities should balance intervention (using reserves) and allowing exchange rate adjustment to avoid creating moral hazard and excessive private-sector risk-taking. - Surveillance should incorporate nationality-based issuance and consolidated balance sheet data to better capture offshore borrowing and potential vulnerabilities. - Monitor marginal issuer trends and pro-cyclical rating behavior as indicators of changing market risk appetite. *Source: IMF working paper chapter “10. LA5: Investment Grade Yield Curves for Nonfinancial Companies––Fixed-Rate Dollar Denominated Bonds” (analysis of LA-5 corporate issuance and balance-sheet vulnerabilities, 2003–2013).* ### References ............................................................................................................. ### _wp1510 - References ............................................................................................................. ### References - References ................................................................................................................................16 ### Annex - Annex .......................................................................................................................................18 ### Figures - 1. Nonfinancial Corporates Bond ..............................................................................................7 - 2. Nonfinancial Corporates Bond Issuance ................................................................................7 - 3. Median Debt to Equity Ratio .................................................................................................9 - 4. Weak Tail (25th Percentile) of Debt to Equity Ratio ............................................................9 - 5. Net Debt to Earnings ............................................................................................................10 - 6. Interest Coverage Ratio........................................................................................................10 - 7. Investment to Total Debt .....................................................................................................11 - 8. Cash To Gross Interest Expenses .........................................................................................11 - 9. LA5: Corporate Term Loan Financing ................................................................................12 *Source: _wp1510 - References .............................................................................................................* ### 10. LA5: Investment Grade Yield Curves for Nonfinancial Companies––Fixed-Rate Dollar ### 10. LA5: Investment Grade Yield Curves for Nonfinancial Companies––Fixed-Rate Dollar Denominated Bonds ### I. Introduction — context and motivation - Sample and scope: micro-level data on bond issuance (Bloomberg, Dealogic) and corporate balance sheets (S&P Capital IQ) for about 1,000 listed non-financial firms between 2003 and 2013 in Brazil, Chile, Colombia, Mexico, and Peru (LA-5). - Macro backdrop: global real interest rates low since 2009 amid unconventional monetary policies and strong investor appetite; Latin American issuance supported by stable domestic fundamentals and supportive commodity prices. - Main concerns motivating analysis: - Rapid ramp-up of corporate bond financing, including in external markets, raising risks of overburdening firms with debt—especially foreign-currency debt—if exchange rates rise or external financing tightens. - Potential spillovers to domestic banking systems if firms face repayment difficulties or withdraw deposits. ### II. Main findings — issuance patterns and composition - Aggregate issuance: - Gross bond issuance by NFCs in LA-5 increased from US$ 15 billion in 2003 (approximately 1 percent of the combined GDP) to US$ 77 billion in 2013 (1.8 percent of the combined GDP), totaling US$ 435 billion over 2003–2013. - Country distribution (2003–2013): - Mexico: nearly 42 percent of NFC issuance. - Brazil: 39 percent. - Chile: 12 percent. - Colombia: 4 percent. - Peru: 3 percent. - Placement and nationality vs. residency: - Foreign placements have led the increase since 2009, with Brazil an exception where domestic bonds remain an important driver. - Foreign issuance associated with Brazilian NFCs often occurs through subsidiaries outside Brazil—nationality-based issuance measures can be substantially larger than residency-based ones. - Issuer quality and investor cycles: - Share of issuance by investment-grade NFCs increased significantly since 2009. - Monthly data show fluctuations in share of lower-rated issuers (notably Brazil and Mexico), indicating episodes of exuberance and moderation. - Sectoral patterns: - Sectors linked to exports and commodities (mining, oil and gas) explain a relevant portion of issuance since 2009. - Meaningful issuance also from domestically-oriented sectors (e.g., construction in Brazil and Mexico: approximately US$ 3.5 billion after 2009; Chilean retail: 15 percent of total issuance since 2011). ### III. Data sources and measurement notes - Dealogic: issuance-by-issuance cross-sectional database with transaction size, maturity, coupon, currency, placement (foreign vs domestic), yield to maturity, issuer residency and parent nationality. - S&P Capital IQ: balance sheet, income and cash flow statements from end-year reports converted to U.S. dollars using end-of-period exchange rates; used to compute leverage and interest coverage ratios. - Distinction: domestic vs. foreign placement defined by market/place where underwriters auction the security. - Limitations highlighted: lack of comprehensive, systematic data on firms’ natural hedges (net export proceeds, foreign currency income from multinationals) and FX derivative positions limits precise assessment of un-hedged exchange rate exposures. ### IV. Leverage and debt-service capacity — key metrics and trends - Leverage measures: - Median debt-to-equity ratio: increased in the past 4 years (re-leveraging since 2010) but overall median in 2013 about the same as early 2003. - Net-debt-to-earnings (net debt / EBITDA): shows a more marked increase over the decade, particularly for Brazil and Colombia, indicating debt has outpaced earnings growth. - Liability-to-asset ratio results broadly consistent with debt-to-equity findings. - As of 2013, leverage ranking: Brazil highest, followed by Chile and Mexico; Colombia and Peru lower. - Subsidiaries generally show higher median leverage than parents (except Mexico). - Debt-service capacity: - Median interest coverage ratios (EBITDA / interest payments) have remained broadly stable or improved somewhat over the decade. - Weak tails: subsets of firms—notably parts of Mexican and Brazilian corporate sectors—exhibit lower interest coverage ratios and greater vulnerability. - Cash buffers: in 2013, median firm cash holdings in all LA-5 countries corresponded to twice the amount necessary to cover gross interest payments. - Investment and cash use: - Capital expenditures as a proportion of total debt followed an increasing trend, but most leveraged firms have not shown relatively higher investment rates. - Firms have increased cash holdings significantly; cash holdings are higher among firms with better debt-servicing capacity—suggesting opportunistic issuance to build buffers rather than to fund investment. ### V. Liability structure shifts and maturity profile - Shift away from bank lending toward bond financing: - Term loans as a share of total debt declined among NFCs in LA-5. - Syndicated lending to private nonfinancial companies fell in 2008 and, though generally rising, had not recovered to 2007 levels by the end of the sample. - Maturity and rate profile: - Firms increased issuance across maturity ranges; notable increase in maturities above 8 years. - Firms secured lower interest rates across the yield curve and kept share of floating-rate debt relatively low. - Firms exploited short-term bond issuance at low rates to manage/repay expensive short-term debt and non-debt liabilities. - Use of proceeds: - Funds used for long-term financing, replacing more expensive debt, and opportunistic buffer-building. - Aggregate medians may hide heterogeneity; firm-level issuance histories show ability to place larger volumes at lower interest rates without incurring maturity shortening or floating-rate risk. ### VI. Foreign currency exposures and risks - Rise in foreign-currency debt: - Surge in international bond issuance increased reliance on foreign currency debt, a potential source of vulnerability if Latin American currencies depreciate. - Difficulty of precise assessment: - Full assessment of currency risk requires comparison of net foreign-currency liabilities and net present value of domestic-currency cash flows; lack of granular data on revenues, assets, and FX derivatives complicates such assessment. - Mexico: IMF (2014) provides comprehensive firm-level foreign currency and interest rate exposure data (not reproduced here). - Mitigating factors and caveats: - A portion of foreign issuance is concentrated in sectors with natural foreign-currency hedges (exporters, commodity producers). - Increase in international reserves has partly mitigated aggregate currency exposure, but risks of moral hazard and distorted private sector incentives noted. - Exchange rate flexibility is emphasized as the most efficient incentive for firms to manage currency risk proactively. ### VII. Issuance through foreign subsidiaries — nationality vs residency measurement - Residency-based external debt statistics can understate foreign liabilities linked to a country when firms issue via foreign subsidiaries. - Brazil: substantial and growing wedge between nationality-based and residency-based external issuance, particularly after 2009. - Evidence of increased issuance through offshore centers (e.g., Cayman Islands) after tax tightening affecting foreign issuance subject to foreign exchange taxation; issuance reduced after tax loosening between 2010 and 2012. - FDI intercompany loans increased after tax loosening; portfolio and FDI-equity stabilized. - Policy and structural drivers: - Regulatory complexity and foreign exchange legislation may encourage issuance through non-resident subsidiaries. - Alternative explanation: large multinationals headquartered in Brazil use foreign subsidiaries to carry out international operations. - Surveillance implication: monitoring consolidated balance sheets and nationality-based measures is important to capture offshore issuance not evident in residency-based BOP statistics. ### VIII. Conclusions and policy implications - Summary assessment: - Bond issuance by NFCs in LA-5 has increased substantially over the past decade, particularly after 2009, enabling firms to raise cheaper funds across maturities without materially increasing floating-rate exposure. - NFC foreign-currency debt has increased; sectoral patterns provide some natural hedges but data gaps prevent comprehensive firm-level currency risk assessment. - No clear evidence of widespread excessive leverage or deterioration in debt-service capacity, but recent re-leveraging and net-debt-to-earnings increases warrant vigilance. - Firms have accumulated cash buffers rather than increasing investment, raising concerns about subdued growth prospects despite cheaper funding. - Key policy messages: - Exchange rate flexibility is critical to incentivize proactive corporate currency risk management. - Authorities should balance intervention (using reserves) and allowing exchange rate adjustment to avoid creating moral hazard and excessive private-sector risk-taking. - Surveillance should incorporate nationality-based issuance and consolidated balance sheet data to better capture offshore borrowing and potential vulnerabilities. - Monitor marginal issuer trends and pro-cyclical rating behavior as indicators of changing market risk appetite. *Source: IMF working paper chapter “10. LA5: Investment Grade Yield Curves for Nonfinancial Companies––Fixed-Rate Dollar Denominated Bonds” (analysis of LA-5 corporate issuance and balance-sheet vulnerabilities, 2003–2013).* ### References ### _wp1510 - References ### Bibliographic References - Avdjiev, S., M. Chui and H.S. Shin, 2014, “Non-financial corporations from emerging market economies and capital flows”, BIS Quarterly Review, December 2014. - Caballero, Ricardo, and A. Krishnamurthy, 2003, “Excessive Dollar Debt: Financial Development and Underinsurance,” The Journal of Finance, Vol. 58, pp. 967–893. - Caballero, J. and A. Powell, 2014, “Balance Sheets and Credit Growth”. In A. Powell, Coord. In Global Recovery and Monetary Normalization: Escaping a Chronicle Foretold? 2014 Latin American and Caribbean Macroeconomic Report, Chapter 4. - Calvo, Guillermo, 2001, “Capital Markets and the Exchange Rate with Special Reference to the Dollarization Debate in Latin America,” Journal of Money, Credit, and Banking, Vol. 33(2), pp.312–34. - Chui, M., I. Fender and V. Sushko, 2014, Risks related to EME corporate balance sheets: the role of leverage and currency mismatch. BIS Quarterly Review, pp 35–47. - Chung, K, J-E Lee, E Loukoianova, H Park and H S Shin (2014): “Global liquidity through the lens of monetary aggregates”, IMF Working Papers, no 14/9. - Claessens, Stijn, Tong Hui, and Wei Shang-Jin, 2011, “From the Financial Crisis to the Real Economy: Using Firm-Level Data to Identify Transmission Channels,” NBER Working Paper 17360 (Cambridge, Massachusetts: National Bureau of Economic Research). - Didier, Tatiana, and Sergio Schmukler, 2014, “Debt Markets in Emerging Economies: Major Trends,” Comparative Economic Studies, Palgrave Macmillan Journals, Vol. 56(2), pp. 200–28, June. - Eichengreen, Barry, and Ricardo Hausmann, and Ugo Panizza, 2003, “Currency Mismatches, Debt Intolerance and Original Sin: Why They are Not the Same and Why it Matters,” NBER Working Paper No. w10036 (Cambridge, Massachusetts: National Bureau of Economic Research). - Gonzalez-Miranda, Maria, 2012, “Nonfinancial Firms in Latin America: A Source of Volatility?” IMF Working Paper 12/279 (Washington: International Monetary Fund). - International Monetary Fund, 2014, Staff Report for Mexico’s Article IV Consultation. - Kamil, Herman, 2012, “How do Exchange Rate Regimes Affect Firms’ Incentives to Hedge Currency Risk? Micro Evidence from Latin America,” IMF Working Paper 12/69. - Shin, Hyun Song, 2013, “The Second Phase of Global Liquidity and Its Impact on Emerging Economies,” remarks at 2013 Federal Reserve Bank of San Francisco Asia Economic Policy Conference. - Turner, P (2014): “The global long-term interest rate, financial risks and policy choices in EMEs”, BIS Working Papers, no 44. - World Bank, 2005, Corporate Reestructuring. Lessons from Experience, ed. by Michael Pomerleano and William Shaw. ### Annex: Tables and Figures (selection and metadata) - Table A1. Sample Size: NFCs' Bond Issuance and Financial Statements - Columns shown include: No. of firms Reporting Domestically Placed, No. of firms Reporting Foreign Placed, No. of firms Reporting Domestically Placed (Nationality of Parent), No. of firms Reporting Foreign Placed (Nationality of Parent), Debt to equity Ratios, Interest Coverage Ratios. - Brazil sample rows (as presented): - 2003 16 18 18 33 438 357 - 2004 28 72 41 84 733 86 - 2005 36 72 81 55 284 20 - 2006 38 21 34 28 547 439 - 2007 42 73 81 95 564 72 - 2008 30 12 79 54 048 2 - 2009 23 81 71 55 204 68 - 2010 48 20 33 31 514 466 - 2011 90 137 72 54 484 441 - 2012 12 41 81 08 354 484 10 - 2013 12 56 10 62 341 538 0 - Chile sample rows (as presented): - 2003 29 61 73 20 6195 - 2004 23 31 92 21 8209 - 2005 33 23 03 22 3210 - 2006 11 31 43 37 9329 - 2007 18 11 74 39 5340 - 2008 25 12 21 38 9334 - 2009 29 52 56 38 1323 - 2010 49 49 37 43 11 - 2011 14 71 26 35 7300 - 2012 14 71 47 34 6299 - 2013 14 13 15 15 337288 - Source lines (as presented): Bond Issuance from Dealogic Financial Data from Standard and Poors' Capital IQ. - Figures referenced (titles and units preserved): - Figure A1. Number of NFC Issuers (Units) - Figure A2. Share of Issuance by Top 5 Issuers (Percent) - Figure A3. Share of Issuance by Top 10 Issuers (Percent) - Figure A4. Brazil: Foreign Placement - Nationality (Percent) - Panel A1. Issuance Breakdown – US$ billion (country panels for Brazil, Chile, Colombia, Mexico, Peru) - Figure A5. Issuance from Nonfinancial Corporates incorporated in Cayman Islands whose Parent is Brazilian (US$ billion) - Figure A6. Brazil - Selected Foreign Liabilities (Stock) (US$ billion) - Figure A7. Issuance from Financial Corporates incorporated in Cayman Islands whose Parent is Brazilian (US$ billion) - Figure A8. Maturity at Issuance (median over the previous 12 months) (Months) - Panel A2. Issuance by Issuer’s Rating Grade (US$ billion) (country panels) - Panel A3. Percent of Non-Investment Grade Issuance (Monthly) (Percent) (country panels) - Figures A9–A11. Median Liability to Asset Ratio; 75th Percentile (Weak Tail): Liability to Asset Ratio; Non-Debt Liabilities to Total Liabilities (time series, 2003–2012) - Figure A12. Cross Distribution of Leverage and Company Size in 2013 (percentile tables by country) - Figure A13. Cross Distribution of Leverage and Investment Level in 2013 (percentile tables by country) - Figure A14. LA-5 Issuance by Maturity (US$ billion) - Figure A15. PEMEX-Mexico Yield at Issuance by Term and Volume (Foreign placement, fixed rate, dollar bond) Yield (top) and US$ million (bottom) - Figure A16. Petrobras (Brazil - Cayman Islands subsidiary) Yield at Issuance by Term and Volume (Foreign placement, fixed rate, dollar bond) Yield (top) and US$ million (bottom) - Figure A17. Braskem-Brazil Yield at Issuance by Term and Volume (Foreign placement, fixed rate, dollar bond) Yield (top) and US$ million (bottom) - Figure A18. America Movil - Mexico Yield at Issuance by Term and Volume (Foreign placement, fixed rate, Dollar bond) Yield (top) and US$ million (bottom) - Panel A4. Foreign Issuance by Sectors (Percent) (country panels for Brazil, Brazil (Nationality), Chile, Colombia, Mexico, Peru) - Notable chart annotations and labels preserved exactly as in source: - “Domestic Quasi-Sovereign”, “Domestic Private”, “Foreign Quasi-Sovereign”, “Foreign Private”, “Total” - Rating categories: “High Yield”, “Non-Investment Grade, Non-high Yield”, “Investment Grade”, “Total” - Capital control measure annotations (numbered 1–6) including: - 1. Tax 2 percent on portfolio flows - 2. Tax 6 percenton fixed income flows - 3. Tax 6 percent on loans abroad -maturity below one year - 4. Tax 6 percent on loans abroad -maturity below two years - 5. Tax 6 percent on loans abroad -maturity below three years - 6. Tax 6 percent on loans abroad -maturity below five years - (additional repeated items for other annotations as presented) - Data and sources explicitly cited within annex: - Sources: Dealogic; and authors’ calculations. - Sources: Dealogic; Brazilian Central Bank; authors’ calculations. - Sources: S&P Capital IQ; and authors’ calculations. - Source: Dealogic and author calculation. - Source: S&P Capital IQ and staff calculation. *Source PDF filename: _wp1510 - References (canonical URL provided in the content unit).* --- _Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2015/_wp1510.pdf_