While opportunism is a fairly well-established explanation
for various aspects of domestic currency debt
issuance, it has until recently not been recognized as
key driver of foreign currency-denominated (henceforth,
‘FC’) debt issuance. Instead, previous work on FC debt
has largely fallen into two camps.In an emerging market
context, a great deal of research – particularly following
the Asian Financial Crisis – has focused on better understanding
why emerging market borrowers seem so dependent
on foreign currency-denominated borrowing.