BIS paper finds emerging market corporations exploiting carry trade
Firms are becoming becoming 'surrogate' financial intermediaries
Corporations in emerging markets appear to be taking on foreign currency-denominated debt as part of a carry trade, becoming "surrogate" financial intermediaries, according to a working paper published today (August 27) by the Bank for International Settlements (BIS).
Global dollar credit and carry trades: a firm-level analysis, by Valentina Bruno and Hyun Song Shin, uses firm-level data rather than the capital account to capture offshore issuance of bonds. Their data covers firms from 47
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