Sovereign Debt Buybacks as a Signal of Creditworthiness PDF Download

Author: Sankarshan Acharya
Publisher:
ISBN:
Category : Credit
Languages : en
Pages : 36

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Book Description
In a signaling equilibrium, countries that buy debt back get debt relief. Those that do not buy debt back do not get debt relief.

Author: Enrica Detragiache
Publisher: World Bank Publications
ISBN:
Category : Credit
Languages : en
Pages : 37

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Book Description
Concerted agreements in which debt repurchases are linked to reduced interest rates or new-money requirements can make buybacks at a fair price viable, while preventing a free-rider problem among riders.

Author: Mr.Udaibir S. Das
Publisher: International Monetary Fund
ISBN: 1475505531
Category : Business & Economics
Languages : en
Pages : 128

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Book Description
This paper provides a comprehensive survey of pertinent issues on sovereign debt restructurings, based on a newly constructed database. This is the first complete dataset of sovereign restructuring cases, covering the six decades from 1950–2010; it includes 186 debt exchanges with foreign banks and bondholders, and 447 bilateral debt agreements with the Paris Club. We present new stylized facts on the outcome and process of debt restructurings, including on the size of haircuts, creditor participation, and legal aspects. In addition, the paper summarizes the relevant empirical literature, analyzes recent restructuring episodes, and discusses ongoing debates on crisis resolution mechanisms, credit default swaps, and the role of collective action clauses.

Author: Asl? Demirgüç-Kunt
Publisher: World Bank Publications
ISBN:
Category : Bank loans
Languages : en
Pages : 39

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Book Description
Suppose that each creditor bank to a particular debtor country is confronted with a choice: each dollar of country debt held can be either rescheduled or sold at a given price. What choice will they make? Relatively strong banks will take advantage of a debt workout to exit from the debt. Relatively weak banks will relend.

Author: Carlos I. Medeiros
Publisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 56

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Book Description
This paper sets forth some basic principles that could help debt managers in emerging market and other countries to plan and implement sovereign debt buyback and swap operations. It discusses the macroeconomic context in which buybacks and swaps are undertaken, the objectives of buybacks and swaps, the analytical framework for deciding whether to undertake a particular buyback or swap operation and for selecting among alternative operations, and some key issues in the determination of the strategy for executing buybacks and swaps. The focus is on developing the analytical framework for evaluating sovereign debt buyback and swap operations, since very little work has been done in this area. In this regard, the paper presents a step-wise decision-making procedure, in which discounted cash flow analysis and the use of strategic benchmarks for the debt play central roles.

Author: Thordur Jonasson
Publisher: International Monetary Fund
ISBN: 1484350545
Category : Business & Economics
Languages : en
Pages : 133

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Book Description
This paper provides an overview of sovereign debt portfolio risks and discusses various liability management operations (LMOs) and instruments used by public debt managers to mitigate these risks. Debt management strategies analyzed in the context of helping reach debt portfolio targets and attain desired portfolio structures. Also, the paper outlines how LMOs could be integrated into a debt management strategy and serve as policy tools to reduce potential debt portfolio vulnerabilities. Further, the paper presents operational issues faced by debt managers, including the need to develop a risk management framework, interactions of debt management with fiscal policy, monetary policy, and financial stability, as well as efficient government bond markets.

Author: Julio Rotemberg
Publisher:
ISBN:
Category : Debt relief
Languages : en
Pages : 44

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Book Description
I develop two models in which debt repurchases by highly indebted sovereign nations are advantageous for all parties. The models are based on the idea that when sovereign debts are large, bargaining costs are large. Creditors spend more resources convincing the debtor that they are tough when they have more at stake. Also, the sanctions which are sometimes triggered when bargaining fails to produce an agreement are larger when debts are larger. For both these reasons buybacks, which reduce the face value of the outstanding debt, can be beneficial. The resulting equilibria are constrained Pareto Optima. But, donors who subsidize buybacks increase overall welfare more than donors who make direct gifts. I also argue that Bulow and Rogoff (1988)'s empirical evidence on buybacks is consistent with my models.

Author: G.M. Grossman
Publisher: Elsevier
ISBN: 9780444815477
Category : Business & Economics
Languages : en
Pages : 904

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Book Description
This reference accords recognition to the recent revolution in macroeconomics wrought by imperfect competition. Grossman and Rogoff (Princeton U.) present chapters by two dozen contributors on two prime areas of research interest: international trade theory and policy (e.g. strategic trade patterns and policies, the relationship between trade and technological progress), and open economy macroeconomics and international finance (covering such topics as exchange rates, foreign lending, and policy coordination). The volume commences with Krugman's overview of the positive theory of international trade, and concludes with analyses of sovereign debt. Annotation copyrighted by Book News, Inc., Portland, OR.

Author: Stijn Claessens
Publisher: World Bank Publications
ISBN:
Category : Debt relief
Languages : en
Pages : 25

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Book Description
This pricing model for secondary market debt is designed to assess the impact of debt reduction on the value of remaining claims and the market value of different types of guarantees.

Author: Albert Tavidze
Publisher: Nova Publishers
ISBN: 9781600217203
Category : Business & Economics
Languages : en
Pages : 262

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Book Description
This series spans the globe presenting leading research in economics. It is perhaps a sign of the times that economic weapons such as sanctions seem to be as powerful as or more so than tanks. International applications and examples of economic progress are invaluable in a troubled world with economic booms bursting like so many penny balloons. Globalisation, outstanding and jobless recoveries present economic issues of concern to millions.