Valentina Bruno and Hyun Song Shin
We conduct a firm-level analysis of borrowing in US dollars by non-financial corporates
from outside the United States. The dataset combines bond issuance data with firm-level
financial information. We find that firms with already high cash holdings are more likely
to issue US dollar-denominated bonds, and that the proceeds of the bond issue add to cash
holdings. The tendency to add cash is more pronounced during periods when the dollar
carry trade is more favourable and is prevalent for emerging market firms.