... converting to the foreign currency, lending at the foreign interest rate, and converting the proceeds back to dollars. The stock and bond indices are total market returns from Datastream, the interest ... WORKING PAPER SERIESNO 883 / MARCH 2008 In 2008 all ECB publications feature a motif taken from the 10 banknote. ASSESSING THE BENEFITS OF INTERNATIONAL PORTFOLIO DIVERSIFICATION IN BONDS ... excess returns for borrowing in US dollars, converting to the domestic currency, lending at the domestic interest rate, and converting the proceed back to dollars. The stock and bond returns...