Credit risk spreads in local and foreign currencies / prepared by Dan Galai and Zvi Wiener.
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...
Saved in:
| Online Access: |
Full Text (via ProQuest) |
|---|---|
| Main Authors: | , |
| Corporate Author: | |
| Format: | eBook |
| Language: | English |
| Published: |
[Washington, D.C.] :
International Monetary Fund,
©2009.
|
| Series: | IMF working paper ;
WP/09/110. |
| Subjects: |
Internet
Full Text (via ProQuest)Online
| Call Number: |
HG3810
|
|---|---|
| HG3810 | Available |