Institutional investors in the Portuguese credit market (1550–1800): The case of the Misericórdias

This article questions the drivers behind the distribution of savings in different capital markets in Portugal between 1550 and 1800. A novel dataset of credit transactions, interest rates and debt service documents a shift in the lenders' investment behaviour. By 1712, one of the leading insti...

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Bibliographic Details
Published in:Revista de historia económica 2024-03, Vol.42 (1), p.91-119
Main Author: Rodrigues, Lisbeth
Format: Article
Language:English
Subjects:
15th century
18th century
Articles/Artículos
Bond markets
Capital markets
Charities
Credit
Creditors
Debt
Debt service
Deficit financing
Government bonds
Institutional investments
Interest rates
Investors
National debt
Political power
Politics
Securities markets
Sovereign debt
Suppliers
Supply & demand
Transactions
Citations: Items that this one cites
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Summary:This article questions the drivers behind the distribution of savings in different capital markets in Portugal between 1550 and 1800. A novel dataset of credit transactions, interest rates and debt service documents a shift in the lenders' investment behaviour. By 1712, one of the leading institutional creditors—the Misericórdias—had ceased to allocate funds to the sovereign debt market. Data reveal that this disinvestment was neither related to the poor performance of debt service nor to the lure of potentially higher returns on private credit. We argue that changes in the rationales for issuing debt justify the drop in the number of institutional investors in the public credit market, and this correlates with the heavy allocation of funds into private lending.
ISSN:0212-6109
2041-3335
DOI:10.1017/S0212610923000137