Corporate Debt Structure with Home and International Currency Bias
We explore the consequences of global capital market segmentation by currency for the optimal currency composition of borrowing by firms. Global bond portfolios are driven by the currency of denomination of assets as investors prefer to lend in their home currency or the international currency, the US Dollar. Larger and more productive firms select into foreign currency issuance. International segmentation results in a quantity-dimension of the exorbitant privilege whereby US firms that only issue in the domestic currency benefit from being able to more easily borrow from global investors.
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Copy CitationMatteo Maggiori, Brent Neiman, and Jesse Schreger, "Corporate Debt Structure with Home and International Currency Bias," NBER Working Paper 31891 (2023), https://doi.org/10.3386/w31891.Download Citation
Published Versions
Matteo Maggiori & Brent Neiman & Jesse Schreger, 2025. "Corporate Debt Structure with Home and International Currency Bias," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 73(2), pages 433-456, June, DOI: 10.1057/s41308-024-00254-x. citation courtesy of 
Matteo Maggiori & Brent Neiman & Jesse Schreger, 2025. "Corporate Debt Structure with Home and International Currency Bias," IMF Economic Review, vol 73(2), pages 433-456.
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