Insights / Chart

Dollar and Euro Shares of Cross-Border Corporate Bond Positions

Source: BFI Working Paper No. 2018-30, “International Currencies and Capital Allocation,” by Matteo Maggiori of Harvard; Brent Neiman, Professor of Economics at Booth School of Business and Director of BFI’s International Economics Initiative; and Jesse Schreger of Columbia University
This figure plots the share of dollar and euro denominated corporate bonds in total cross-border holdings (i.e. i ≠ j).

Following the Great Recession, the dollar became the currency of denomination for cross-border holdings at a growing rate, increasing from roughly 50 percent to 70 percent, with the euro falling to under 20 percent.