We explore the link between firms' dollar bond borrowing and their FX-hedged funding opportunities, as reflected in a positive corporate basis (the relative cost of local to synthetic currency borrowing). We first document that firms substitute domestic for dollar borrowing when the corporate basis widens. Additionally, we find that when these funding opportunities appear, the currency substitution is greater for highly rated firms. The willingness of highly rated firms to issue dollar bonds when the basis widens is stronger during periods of heightened demand for dollar-denominated safe assets.

中文翻译：

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美元借款，公司信用风险和外汇对冲资金的机会

我们探索了公司的美元债券借贷与他们的外汇对冲融资机会之间的联系，这在积极的公司基础（本地货币对合成货币借贷的相对成本）中得到了反映。我们首先证明，当公司基础扩大时，公司可以用国内替代美元借款。此外，我们发现，当出现这些融资机会时，对于评级较高的公司，货币替代更大。当对美元计价的安全资产的需求增加时，当基数扩大时，评级较高的公司发行美元债券的意愿就更强。