Home currency issuance in international bond markets

• 成果类型: Article
• 署名作者: Hale, Galina B.; Jones, Peter C.; Spiegel, Mark M.
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - San Francisco; University of California System; University of California Berkeley
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2019.103256
• 发表日期: 2020
• 关键词: bond; debt; CRISIS; Currency; mismatch

摘要

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. (C) 2019 Elsevier B.V. All rights reserved.