World economic forum: “This is the impact of the home currency bias

September 11, 2018

“Almost all owners of foreign bonds hold that debt in their own currencies, rather than in the currency of the nation where the debt was issued. This home currency bias is so strong that, if one knows the currency in which a bond is issued, it is possible to make a very good guess about the nationality of its owner without knowing the nationality of the debt issuer.”

 

NBER DIGEST: “Debt Markets Are Biased toward Home Country Currencies”

September 3, 2018

“Many investors avoid currency risk when buying debt issued by borrowers in foreign countries, but the U.S. dollar's international status makes dollar-denominated debt an easier sell.”

 

FORBES: “Trade Wars, Dollar Dominance And What It Means For Global Investing”

July 3, 2018

“Starting at the time of the global financial and Eurozone crises, the share of corporate bond holdings denominated in U.S. dollars surges while that denominated in euros collapses.”

 

Pensions & Investments: “AQR Insight Award granted to Two papers this year”

June 28, 2018

“In ‘International Currencies and Capital Allocation’, the authors revealed that although global investors have a strong bias for their home currency, there's still an international preference for the U.S. dollar.”

 

Wall STREET JOURNAL: “In a Dollarized World, a Rising Dollar Spells Pain

May 9, 2018

“Investors overwhelmingly prefer bonds denominated either in their own currency, or dollars.”