Home currency issuance in international bond markets

A-Tier
Journal: Journal of International Economics
Year: 2020
Volume: 122
Issue: C

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We examine currency denomination in a large sample of private international bonds issued by small country firms. We find a substantive and persistent increase in the share of international bond placements denominated in issuers' home currencies, potentially mitigating currency mismatch. This trend appears to have accelerated since the global financial crisis. We find that global financial conditions as well as issuers' country inflation history determine the change in home currency issuance. We present a model illustrating how temporary changes in relative currency-denomination costs can lead to persistent changes in the currency composition of bond issuance.

Technical Details

RePEc Handle
repec:eee:inecon:v:122:y:2020:i:c:s0022199618302423
Journal Field
International
Author Count
3
Added to Database
2026-01-25