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Journal Article
The Offshore Dollar and US Policy
Dollar borrowing outside the United States has over generations grown to be very large, with US policy providing some inducement and, in critical episodes, support. But in lending dollars through open-ended central bank swaps in 2008 and 2020, the Fed broke new ground as international lender of last resort. By countering dollar runs on non-US banks, the Fed supplied the global public good of financial stability. In addition, it restored domestic US monetary transmission. In 2020 the Fed's last-resort buying of domestic corporate bonds also did double duty, stabilizing the global dollar bond ...
Conference Paper
The cost of capital for banks in international competition
Monograph
Policies toward corporate leveraging
Journal Article
Foreign bank credit to U.S. corporations: the implications of offshore loans
International financial transactions have grown in recent years far faster than has our ability to understand their significance for national economies. This article seeks to explain the rise in bank loans from banks outside the United States to U.S. businesses. The article looks at the implications of the rapid growth of such loans for issues ranging from the corporate debt buildup in the United States in the late 1980s to the loss of market share in U.S. commercial lending by U.S.-owned banks.
Journal Article
Corporate refinancing in the 1990s
U.S. corporations have floated stocks and bonds in unprecedented amounts in the last year. How much have corporate treasurers reduced their firms' interest payments through such refinancing? After assessing the motives for refinancing, the authors estimate the aggregate interest savings achieved through equity issuance, bond calls, and bond sales and compare the effectiveness of refinancing and lower short-term interest rates in easing the interest burden on U.S. corporations' cash flows.
Journal Article
Financial consequences of new Asian surpluses
Journal Article
The cost of capital for securities firms in the United States and Japan
The authors use stock market valuations to construct estimates of the cost of capital for five U.S. and four Japanese securities firms in 1982-91. They seek explanations for the observed capital cost differences in macroeconomic, risk, policy, and industrial organization factors. Their analysis also contrasts the gap in capital costs between U.S. and Japanese securities firms with the corresponding gap for industrial firms and banks.