Borrowing in foreign currency: Austrian households as carry traders |
| |
Authors: | Christian Beer Steven Ongena Marcel Peter |
| |
Affiliation: | 1. Vienna University of Economics and Business, Austria;2. CentER, Tilburg University, The Netherlands and CEPR;3. Swiss National Bank, Switzerland |
| |
Abstract: | Household borrowing in a foreign currency is a widespread phenomenon in Austria. Thirteen percent of Austrian households report their housing loan to be denominated in foreign currency, mostly Swiss franc. Yet, despite its importance, peculiar character, and acute policy concerns, we know little about the attitudes and characteristics of the households involved in this type of carry trade. We analyze a uniquely detailed financial wealth survey of 2556 Austrian households to sketch a comprehensive profile of the attitudes and characteristics of the households involved. We employ both univariate tests and multivariate multinomial logit models. The survey data suggest that risk seeking, affluent, and married households are more likely to take a housing loan in a foreign currency. Financially literate or high-income households are more likely to take a housing loan in general. These findings partially assuage policy concerns about household default risk on foreign-currency housing loans or household retirement security. |
| |
Keywords: | F34 F37 G15 G21 |
本文献已被 ScienceDirect 等数据库收录! |
|