Credit Risk Spreads in Local and Foreign Currencies /
The paper shows how-in a Merton-type model with bankruptcy-the currency composition of debt changes the risk profile of a company raising a given amount of financing, and thus affects the cost of debt. Foreign currency borrowing is cheaper when the exchange rate is positively correlated with the ret...
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| Format: | Czasopismo |
| Język: | English |
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Washington, D.C. :
International Monetary Fund,
2009.
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| Seria: | IMF Working Papers; Working Paper ;
No. 2009/110 |
| Dostęp online: | Full text available on IMF |