We explore the motivations for borrowers to raise foreign currency debt and swap the proceeds into local currency, rather than borrowing the local currency directly. The growing, and in some markets large, volume of such opportunistic swap-covered borrowing, suggests that it can be a...

The structure of market making in government bond markets has shifted from a bank-centric model to a hybrid one in which non-bank financial institutions, notably principal trading firms and hedge funds, play an important role alongside banks. This shift has occurred in several countries and,...