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International Debt and Special Purpose Entities: Evidence from Ireland

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  • 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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    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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