Caramichael, John; Gopinath, Gita; Liao, Gordon Y. - 2021
We isolate a U.S. dollar currency premium by comparing corporate bonds issued in the dollar and the euro by firms o … in the dollar. First, while the dollar dominates global debt issuance, borrowing costs in the dollar are more expensive … observe a dollar safety premium in relative hedged borrowing costs, found in the subset of bonds with high credit ratings and …