Global Dollar Credit and Carry Trades: A Firm-Level Analysis

• 成果类型: Article
• 署名作者: Bruno, Valentina; Shin, Hyun Song
• 署名单位: American University; Bank for International Settlements (BIS)
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhw099
• 发表日期: 2017
• 页码: 703
• 关键词: CORPORATE CASH HOLDINGS; governance; MARKETS; finance

摘要

We conduct a firm-level analysis of borrowing in US dollars by nonfinancial corporates from outside the United States. We find that emerging market firms with already high cash holdings are more likely to issue US dollar-denominated bonds, especially during periods when the dollar carry trade is more favorable. The proceeds of the dollar bond issuance add to the firm's cash holdings more than other sources of funds. The evidence points to financial decisions that resemble carry trades, rather than to precautionary borrowing in anticipation of future financing needs.