Hostname: page-component-78c5997874-ndw9j Total loading time: 0 Render date: 2024-11-16T01:16:39.074Z Has data issue: false hasContentIssue false
  • English
  • Français

The Exposure of Long-Term Foreign Currency Bonds

Published online by Cambridge University Press:  06 April 2009

Michael Adler  and
Bernard Dumas
Get access Rights & Permissions [Opens in a new window]

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

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

REFERENCES

[1]Aliber, R. Z., and Stickney, C. P.. “Accounting Measures of Foreign Exchange Exposure: The Long and Short of It.” Accounting Review (01 1975), pp. 44–57.Google Scholar
[2]Myers, S. C., and Turnbull, S. M.. “Capital Budgeting and the Capital Asset Pricing Model: Good News and Bad News.” Journal of Finance (05 1977), pp. 321–332.CrossRefGoogle Scholar
[3]Rubinstein, M. E. “An Aggregation Theorem for Security Markets.” Journal of Financial Economics (09 1974).CrossRefGoogle Scholar
[4]Rubinstein, M. E.. “The Valuation of Uncertain Income Streams and the Pricing of Options.” The Bell Journal of Economics (Autumn 1976), pp.407–425.CrossRefGoogle Scholar
[5]Samuelson, P. A., and Swamy, S.. “Invariant Economic Index Numbers and Canonical Quality: Survey and Synthesis.” American Economic Review (09 1974), pp. 566–593.Google Scholar
[6]Wyman, H. E. “Analysis of Gains and Losses from Foreign Monetary Items: An Application of Purchasing Power Parity Concepts.” Accounting Review (07 1976), pp. 545–558.Google Scholar