In debt markets, the corporate trend is to:

Question

Quizplus · Accepted Answer

The corporate trend in debt markets is to raise debt capital in the local markets first. This is because it is usually easier and more cost-effective to raise debt capital in local markets due to familiarity with local institutions and regulations, and lower transaction costs. It also helps to mitigate foreign exchange risk, as borrowing in a foreign currency may expose the company to currency fluctuations. raising local debt first allows the company to establish a borrowing track record that can make subsequent borrowing in other markets easier and cheaper.[93]

In Debt Markets, the Corporate Trend Is To