International Debt and Special Purpose Entities: Evidence from Ireland

30 Pages Posted: 30 Jul 2019

See all articles by Vahagn Galstyan

Vahagn Galstyan

Central Bank of Ireland

Eduardo Maqui Lopez

European Central Bank (ECB)

Peter McQuade

European Central Bank (ECB)

Date Written: July, 2019

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.

Keywords: international finance, special purpose entities (SPEs)

JEL Classification: F36, G23, G15

Suggested Citation

Galstyan, Vahagn and Maqui Lopez, Eduardo and McQuade, Peter, International Debt and Special Purpose Entities: Evidence from Ireland (July, 2019). Available at SSRN: https://ssrn.com/abstract=3428972 or http://dx.doi.org/10.2139/ssrn.3428972

Vahagn Galstyan (Contact Author)

Central Bank of Ireland ( email )

P.O. Box 559
Dame Street
Dublin, 2
Ireland

Eduardo Maqui Lopez

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

Peter McQuade

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

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