Apportioning Foreign Exchange Risk through the Use of Third Currencies: Some Questions on Efficiency
This paper explores the question of how international loans should be denominated in order to minimize the total risks to be borne by both borrower and lender. The authors conclude that, despite current practice, two contracting parties who account in different currencies can always achieve a better...
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| Veröffentlicht in: | Financial management 1978-10, Vol.7 (3), p.25-30 |
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| container_title | Financial management |
| container_volume | 7 |
| creator | Schwab, Bernhard Lusztig, Peter |
| description | This paper explores the question of how international loans should be denominated in order to minimize the total risks to be borne by both borrower and lender. The authors conclude that, despite current practice, two contracting parties who account in different currencies can always achieve a better sharing of risk by using a mix of their two currencies rather than a third currency. |
| doi_str_mv | 10.2307/3665007 |
| format | Article |
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| fulltext | fulltext |
| identifier | ISSN: 0046-3892 |
| ispartof | Financial management, 1978-10, Vol.7 (3), p.25-30 |
| issn | 0046-3892 1755-053X |
| language | eng |
| recordid | cdi_proquest_journals_208198572 |
| source | Periodicals Index Online; EBSCOhost Business Source Complete; JSTOR Archive Collection A-Z Listing; Alma/SFX Local Collection |
| subjects | Business risks Currency Economic fluctuations Exchange rates Financial management Financial risk Financial transactions Foreign exchange Foreign exchange rate risk Foreign exchange rates Foreign exchange translations International finance International trade Investment risk Lenders Loans Losses Optimization Risk Risk sharing |
| title | Apportioning Foreign Exchange Risk through the Use of Third Currencies: Some Questions on Efficiency |
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