Seminario DECON: Juliana Salomao (University of Minnesota)
Fecha de inicio: 24 de Noviembre, 2020, 14:00 hrs.
Fecha de término: 24 de Noviembre, 2020, 15:00 hrs.
Estimados Académicos FEN,
El martes 24 de noviembre a las 14 horas se realizará el Seminario organizado por el Departamento de Economía, titulado Why is Dollar Debt Cheaper? Evidence from Perú.
Expone: Juliana Salomao, Assistant Professor, Finance Carison School of Management, University of Minnesota; Ph. D. in Economics, Stanford University.
Co-autores: Bryan Gutierrez y Victoria Ivashina.
Abstract: In emerging markets, a significant share of corporate loans are denominated in dollars. Using novel data that enables us to see currency and the cost of credit, in addition to several other transaction- level characteristics, we re-examine the reasons behind dollar credit popularity. We find that a dollar- denominated loan has an interest rate that is 2% lower per year than a loan in Peruvian Soles. Expectations of exchange rate movements do not explain this difference. We show that this interest rate differential for lending rates is closely matched by the differential in the deposit market. Our results suggest that the preference for dollar loans is rooted in the local household preference for dollar savings and a banking sector that is closely matching its foreign assets and liabilities. We find that borrower competitive pressure increases the pass-through of this differential.
Saludos cordiales,
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