Bacchetta, Philippe; Cordonier, Rachel; Merrouche, Ouarda - 2020 - This draft: June 2020
An unintended consequence of loose US monetary policy is the increase in currency risk exposure abroad. Using firm-level data on corporate bond issuances in 17 emerging market economies (EME) between 2003 and 2015, we find that EME companies are more likely to issue bonds in foreign currency...