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The Exposure of Long-Term Foreign Currency Bonds

Published online by Cambridge University Press:  06 April 2009

Michael Adler  and
Bernard Dumas
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Extract

A currency is not risky because devaluation is highly likely. If the devaluation were certain, there would be no risk at all. A weak currency can be less risky than a strong currency. A strong currency does not become risky because it has been used to denominate a firm's debt.

Type
International Finance
Information
Journal of Financial and Quantitative Analysis , Volume 15 , Issue 4 , November 1980 , pp. 973 - 994
Copyright
Copyright © School of Business Administration, University of Washington 1980

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References

REFERENCES

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