Home currency issuance in international bond markets

Galina Hale, Peter Jones () and Mark Spiegel

Journal of International Economics, 2020, vol. 122, issue C

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.

Keywords: Bond; Debt; Crisis; Currency; Mismatch (search for similar items in EconPapers)
JEL-codes: E52 F34 F36 F65 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0022199618302423
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Home currency issuance in international bond markets (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:122:y:2020:i:c:s0022199618302423

DOI: 10.1016/j.jinteco.2019.103256

Access Statistics for this article

Journal of International Economics is currently edited by Gourinchas, Pierre-Olivier and Rodríguez-Clare, Andrés

More articles in Journal of International Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().