Corporate Debt Structure with Home and International Currency Bias

Matteo Maggiori (), Brent Neiman () and Jesse Schreger ()
Additional contact information
Matteo Maggiori: Stanford Graduate School of Business, NBER and CEPR
Brent Neiman: University of Chicago, Booth School of Business, NBER, and CEPR
Jesse Schreger: NBER, and CEPR

IMF Economic Review, 2025, vol. 73, issue 2, No 3, 433-456

Abstract: Abstract We explore the consequences of global capital market segmentation by currency for the optimal currency composition of borrowing by firms. Global bond portfolios are driven by the currency of denomination of assets as investors prefer to lend in their home currency or the international currency, the US Dollar. Larger and more productive firms select into foreign currency issuance. International segmentation results in a quantity dimension of the exorbitant privilege whereby US firms that only issue in the domestic currency benefit from being able to more easily borrow from global investors.

Keywords: Capital Flows; Exorbitant privilege; Home currency bias; Reserve currencies (search for similar items in EconPapers)
JEL-codes: E42 E44 F3 F55 G11 G15 G23 G28 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/s41308-024-00254-x Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
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:pal:imfecr:v:73:y:2025:i:2:d:10.1057_s41308-024-00254-x

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41308/PS2

DOI: 10.1057/s41308-024-00254-x

Access Statistics for this article

More articles in IMF Economic Review from Palgrave Macmillan, International Monetary Fund
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().