Credit Risk Spreads in Local and Foreign Currencies /

The paper shows how-in a Merton-type model with bankruptcy-the currency composition of debt changes the risk profile of a company raising a given amount of financing, and thus affects the cost of debt. Foreign currency borrowing is cheaper when the exchange rate is positively correlated with the ret...

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Xehetasun bibliografikoak
Egile nagusia: Wiener, Zvi
Beste egile batzuk: Galai, Dan
Formatua: Aldizkaria
Hizkuntza:English
Argitaratua: Washington, D.C. : International Monetary Fund, 2009.
Saila:IMF Working Papers; Working Paper ; No. 2009/110
Sarrera elektronikoa:Full text available on IMF