The Evidence and Impact of Financial Globalization

Chapter 15

Opportunistic Foreign Currency Debt Issuance

M.R. McBrady* and M.J. Schill^†

^*Silver Creek Capital Management, Seattle, WA, USA

^†University of Virginia, Charlottesville, VA, USA

Outline

Introduction and Overview

Related Literature

Other Opportunistic Debt Issuance

Other Explanations for FC Debt Issuance

Empirical Evidence on FC Debt Issuance

Long-Term IRP

Evidence on the UIP

Evidence on the CIP

Opportunistic FC Debt Issuance

Conclusion

Glossary

References

Introduction and Overview

Foreign currency-denominated borrowing is arguably one of the most central features of financial globalization. After all, perhaps the most straightforward definition of financial globalization is the simple ability for borrowers and savers to transact across ...