dollar exchange rate appear to play a limited role in explaining ex-ante credit risk. Economic uncertainty, risk appetite, and the U.S. short-term interest rates, and, after it, banks and nonbanks originated such loans in response to a decline in U.S. borrowers in response to a decline in U.S. Before the crisis, banks made ex-ante riskier loans to non-U.S. interest rates have an important effect on ex-ante credit risk of cross-border corporate loans, though the channels are different in the pre- and post-crisis periods. monetary policy and highlights the global lending and risk-taking channels. interest rates, our analysis provides evidence of cross-border spillover effects of U.S. To the extent that actions of the Federal Reserve affect U.S. Because banks tend to originate these loans with intent to sell to nonbank investors, we examine risk taking by the broad financial system. ![]() ![]() We study how low interest rates in the United States affect risk taking in the market for cross-border corporate loans.
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