indexed currency borrowings

Definition

Inflation indexed debt consisting of foreign currency loans obtained by a domestic borrower intended to capitalize on interest rate or inflation differentials between a local and foreign currency. In many cases, the domestic borrower is betting on the devaluation of the foreign currency which will reduce the cost of the loan.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
indexed certificate of deposit (indexed CD) indexed earnings