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International Debt and Special Purpose Entities: Evidence from Ireland

Author

Listed:
  • Galstyan, Vahagn

    (Central Bank of Ireland)

  • Maqui, Eduardo

    (European Central Bank)

  • McQuade, Peter

    (Central Bank of Ireland)

Abstract
This paper examines international debt issuance through Irish-resident Special Purpose Entities (SPEs). Using a unique new dataset covering the population of Irish-resident SPEs reporting to the Central Bank of Ireland over the period 2005-2017, we identify cross-country debt financing links channelled through SPEs. The empirical analysis suggests that tax optimisation is an importantmotive, particularly for sponsors of Irish-resident securitisation vehicles, while investor protection and financial development are important additional considerations for sponsors of non-securitisation vehicles.

Suggested Citation

  • Galstyan, Vahagn & Maqui, Eduardo & McQuade, Peter, 2019. "International Debt and Special Purpose Entities: Evidence from Ireland," Research Technical Papers 13/RT/19, Central Bank of Ireland.
    • Handle: RePEc:cbi:wpaper:13/rt/19
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    Cited by:

    1. Brian Golden & Eduardo Maqui, 2024. "What ‘special purposes’ explain cross-border debt funding by banks? Evidence from Ireland," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 160(3), pages 761-783, August.
    2. Sanchez Pacheco, André, 2022. "A consolidated-by-nationality approach to Irish foreign exposure," International Economics, Elsevier, vol. 170(C), pages 235-247.
    3. Golden, Brian & Maqui, Eduardo, 2023. "How ‘special’ are international banks sponsoring Irish-resident SPEs?," Finance Research Letters, Elsevier, vol. 52(C).
    4. Lorenz Emter & Peter McQuade & Swapan-Kumar Pradhan & Martin Schmitz, 2024. "Determinants of currency choice in cross-border bank loans," BIS Working Papers 1184, Bank for International Settlements.
    5. André Sanchez Pacheco, . "Consolidated foreign wealth of nations: Nationality-based measures of international exposure," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.

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    More about this item

    Keywords

    international finance; special purpose entities (SPEs).;

    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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