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International debt and Special Purpose Entities: evidence from Ireland

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  • Galstyan, Vahagn
  • Maqui, Eduardo
  • McQuade, Peter

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 important motive, particularly for sponsors of Irish-resident securitisation vehicles, while investor protection and financial development are important additional considerations for sponsors of non-securitisation vehicles. JEL Classification: F36, G23, G15

Suggested Citation

  • Galstyan, Vahagn & Maqui, Eduardo & McQuade, Peter, 2019. "International debt and Special Purpose Entities: evidence from Ireland," Working Paper Series 2301, European Central Bank.
    • Handle: RePEc:ecb:ecbwps:20192301
    Note: 2105744
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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. Moloney, Kitty & O'Gorman, Paraic, 2025. "Specialist Property Lenders and Private Credit: Financial Stability Considerations," Financial Stability Notes 1/FS/25, Central Bank of Ireland.
    5. 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.
    6. 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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