Since 1980, foreign investors have timed their purchases and sales of U.S. Treasurys to yield particularly low returns. Their annual dollar-weighted returns, measured by IRRs, are around 3% lower than a buy-and-hold strategy over the same horizon. In comparison, the IRRs achieved by domestic...

From 1977 to 2013, bilateral stock flows between investors in the United States and foreign countries grew nearly tenfold. I study how this international flow of capital influences U.S. firm-level stock returns. I show that firms with low sensitivity to international stock flows have higher...

The corporate basis measures the pricing difference between dollar and foreign currency bonds issued by the same corporate entity. In this paper, we decompose the basis into a risky asset yield spread, a safe asset convenience yield, and FX hedging costs with the covered interest rate parity...