Can someone explain to me what the impact would be if a corporation issues a lot of bonds in one currency? would that currency appreciate or depreciate? and why?
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DislikedCan someone explain to me what the impact would be if a corporation issues a lot of bonds in one currency? would that currency appreciate or depreciate? and why?Ignored
DislikedThanks man. Yeah i was confused cause a mate of mine works for inv bank and he was saying his firm is going to issue a lot of AUD bonds causing AUD to depreciate. I was a bit confused as to how that could be. I guess the issue really is where that money goes once raised, back into domestic supply or elsewhere. This is probably similar to the debate whether quantitative easing is increasing or keep money supply the same.Ignored
DislikedThanks man. Yeah i was confused cause a mate of mine works for inv bank and he was saying his firm is going to issue a lot of AUD bonds causing AUD to depreciate. I was a bit confused as to how that could be. I guess the issue really is where that money goes once raised, back into domestic supply or elsewhere. This is probably similar to the debate whether quantitative easing is increasing or keep money supply the same.Ignored
Dislikedhello,
it seems the bank that your friend works 4 has some financial constraints. because when a corporation needs money(capital injection) 4 investments or projects? it either goes 2 the bank 4 a loan, sells more shares(if it's listed) or find a angel investor(middle east princes) or sell bonds!!!
demand n supply is 1 of the determining factors in the fx markets. only what the finance minister implies, central bank decision 2 raise/cut interest rates, selling bonds(debts of their country) n market sentiment of central banks around the world...Ignored