“Washington Mutual Inc.’s issuance of bonds covered by U.S. mortgages in European credit markets, and potential follow-on activity by other U.S. financial institutions, carries risk should the dollar fall as expected, Merrill Lynch market strategist Richard Bernstein said in a note….
“We were accordingly somewhat startled,” by WaMu’s move, Bernstein wrote. “Cheaper financing by issuing in stronger currencies: Isn’t this the financing road many an emerging market has unsuccessfully traveled?”
