The currencies of paper currency

How do emerging market corporates fare during periods of currency depreciation? We find that nonfinancial firms that exploit favorable global financing conditions to issue U.S. dollar bonds and build cash balances are also those whose share price is most ...

We use principal component analysis on 55 bilateral exchange rates of 11 developed currencies to identify two important global risk sources in foreign exchange (FX) markets. The risk sources are related to Carry and Dollar but are not spanned by these ...

We examine the ability of existing and new factor models to explain the comovements of G10 currency changes, measured using “currency baskets.” A clustering technique reveals a clear two-block structure in currency comovements, with the first block ...