interest rate parity) for a wide range of currencies with respect to the dollar since the global financial crisis. Theory of … the foreign exchange (FX) swap market predicts that shortage of global arbitrage capital (GAC), by making the FX swap …

) across multiple horizons imply simultaneous arbitrage opportunities only if uncollateralized interbank lending rates are … simple no-arbitrage framework. They deliver novel quantitative benchmarks that reconcile a zero cross-currency basis with non …-zero cross-currency basis swap rates. We quantify that the no-arbitrage benchmark accounts for about two thirds of the alleged …