Reasons behind offshore bond issuance: BIS
A Bank for International Settlements paper, published Friday, identifies three reasons underlying offshore bond issuance.
Susan Black and Anella Munro, the paper's authors, write that residents of offshore market countries issue paper to arbitrage price differentials; access foreign investors; and give themselves the opportunity to issue larger, longer-rated or longer-maturity bonds.
Their results lend support to two ideas: first, that deviations from covered interest parity are actively
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