The Strategy of Debt Buybacks PDF Download

Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 145192187X
Category : Business & Economics
Languages : en
Pages : 16

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Book Description
The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.

Author: Carlos Alfredo RODRIGUEZ
Publisher:
ISBN:
Category :
Languages : en
Pages :

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

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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: Carlos Alfredo Rodriguez
Publisher:
ISBN:
Category :
Languages : en
Pages : 16

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This paper is concerned with analyzing the strategy of a debtor country repurchasing its debt at market prices. The main result, for the case when unpaid interest is rolled over, is that a strategy of announced debt repurchases at market prices, under competitive conditions and rational expectations, will only allow the country to recover debt at par value whenever the market expects the remaining debt to be fully served at some time in the future. When debt holders are myopic with respect to future debt repurchases, a strategy can be devised by which all of the quot;excessquot; debt is repurchased at a price equal, in present value, to that one prevailing before the policy was announced.

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

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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: Ishac Diwan
Publisher: World Bank Publications
ISBN:
Category : Debt equity conversion
Languages : en
Pages : 48

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Book Description
Two debt- reduction mechanisms - market buybacks and concerted debt- reduction agreements - run into coordination problems. The menu approach captures some of the advantages of both but not their inconveniences.

Author: Queen's University (Kingston, Ont.). Institute for Economic Research
Publisher: Kingston, Ont. : Institute for Economic Research, Queen's University
ISBN:
Category :
Languages : en
Pages :

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Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1451949359
Category : Business & Economics
Languages : en
Pages : 22

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This paper provides empirical evidence on the determinants of long-term growth performance in a sample of 55 developing countries grouped by income levels. The evidence indicates that a model incorporating the savings rate, export performance, expenditures on human capital development, the growth of population, and the real interest rate on external debt, explains the growth performance of these countries remarkably well. The model also suggests policies that would lead to higher long-run rates of growth.

Author: Mr.Peter Wickham
Publisher: International Monetary Fund
ISBN: 9781557750419
Category : Business & Economics
Languages : en
Pages : 430

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Book Description
This book, edited by Jacob A. Frenkel, Michael P. Dooley, and Peter Wickham, presents a sample of the work of the IMF and that of world-renowned scholars on the analytical issues surrounding the explosion of countries with debt-servicing difficulties and describes debt initiatives and debt-reduction techniques that hold the best promise for finding a lasting solution to the problems of debtor countries.

Author: Mr.Emre Balibek
Publisher: International Monetary Fund
ISBN: 1498314996
Category : Business & Economics
Languages : en
Pages : 68

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Book Description
This report provides guidance on using the Analytical Tool of the Medium-Term Debt Management Strategy (MTDS). The MTDS framework consists of a methodology, published as the ‘Guidance Note for Developing a Medium-Term Debt Management Strategy’, and an associated analytical tool (AT) that can be used to assess the cost-risk trade-offs of alternative strategies to help identify the preferred strategy. The MTDS framework supported by the AT quantitative analysis helps to determine the financing strategy. The chosen debt management strategy sets out the financing composition path to meet the debt management objective(s). The profile of future interest payments and the amortizations of new debt are driven by the debt management strategy. The MTDS AT is based on annual cash flow. Although this assumption is enough for analyzing alternative debt management strategies, in some cases, particularly for countries that are heavily dependent on short-term securities with maturities of less than a year, it would be helpful to work with cash flows with higher frequency.