Newton meets Van Leeuwenhoek: Identifying international investors’ common currency preferences
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- 作者：Martijn A. Boermans
- 关键词：International portfolio choice ; Gravity model ; Euro currency ; Securities holdings statistics
- 刊名：Finance Research Letters
- 出版年：2016
- 出版时间：May 2016
- 年：2016
- 卷：17
- 期：Complete
- 页码：62-65
- 全文大小：269 K
文摘
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We present new evidence on investors’ preference for assets denominated in their home country’s currency.
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We estimate a gravity model using the Securities Holdings Statistics database with end-2014 data.
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We analyse the difference between preferences for debt securities denominated in euros vs. debt securities issued by euro area residents.
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On top of home bias and gravity effects, common currency preference is an important determinant of debt holdings.