Issuing “foreign-law” debt can cut costs in times of crisis – ECB paper

Bonds performance

Governments that issue debt in foreign jurisdictions can reduce the costs they face in crises, a working paper published by the European Central Bank finds.

In Foreign-law bonds: can they reduce sovereign borrowing costs?, Marcos Chamon, Julian Schumacher and Christoph Trebesch examine whether there is a “foreign-law premium” on government debt.

The authors look at bonds issued by eurozone governments in both their own and foreign jurisdictions from 2006 to 2013. They compare the changes in

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: