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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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    References listed on IDEAS

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    Cited by:

    1. Andre Sanchez Pacheco, 2021. "A consolidated-by-nationality approach to Irish foreign exposure," Trinity Economics Papers tep1421, Trinity College Dublin, Department of Economics, revised Dec 2021.

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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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