The pari passu clause in sovereign debt instruments
... ("The purpose of the pani passu clause is to ensure that the borrower does not have, nor will it subsequently create, a class of creditors whose claims against the borrower will rank legally senior to the indebtedness represented by the loan agreement."); FRANK GRAAF. EUROMARKET FINANCE: ISSUES OF E ...
... ("The purpose of the pani passu clause is to ensure that the borrower does not have, nor will it subsequently create, a class of creditors whose claims against the borrower will rank legally senior to the indebtedness represented by the loan agreement."); FRANK GRAAF. EUROMARKET FINANCE: ISSUES OF E ...
Debt committee report March 2001
... earnings. Since these stock measures do not take into account the interest rate payable on debt and the maturity structure of the debt - very relevant factors influencing debt service payments - the better and more accurate measures give net present value of external debt (NPV) both as a percentage ...
... earnings. Since these stock measures do not take into account the interest rate payable on debt and the maturity structure of the debt - very relevant factors influencing debt service payments - the better and more accurate measures give net present value of external debt (NPV) both as a percentage ...
Hedging and Speculating with Interest Rate Swaps
... more likely to use derivatives to speculate in an effort to lower their cost of funds? Unfortunately, these types of questions are very difficult to answer with the cross-sectional data on derivatives usage over short periods of times such as a single fiscal year that most existing analyses have bee ...
... more likely to use derivatives to speculate in an effort to lower their cost of funds? Unfortunately, these types of questions are very difficult to answer with the cross-sectional data on derivatives usage over short periods of times such as a single fiscal year that most existing analyses have bee ...
Inflation, Debt, and Default
... However, for a domestic government, debt becomes less attractive in bad times: deflation makes real government obligations larger in recessions, when the government values consumption more. In contrast, the government in the countercyclical economy benefits from the haircut induced by inflation in b ...
... However, for a domestic government, debt becomes less attractive in bad times: deflation makes real government obligations larger in recessions, when the government values consumption more. In contrast, the government in the countercyclical economy benefits from the haircut induced by inflation in b ...
Fiscal Austerity during Debt Crises
... be repaid. Recall that the fiscal constraint limits the government from transferring resources from the private sector to the public sector, since tax rates are fixed and lump sum taxes are not allowed. In this context, if the government has a large enough level of debt such that rolling it over is ...
... be repaid. Recall that the fiscal constraint limits the government from transferring resources from the private sector to the public sector, since tax rates are fixed and lump sum taxes are not allowed. In this context, if the government has a large enough level of debt such that rolling it over is ...
Default, rescheduling and inflation : debt crisis in Spain
... governments to both carry out debt restructurings and also use inflation tax. Consequently, in the three first parts of this section I will study Camacho’s arranged, voluntary debt restructuring, the Fernández Villaverde’s debt rescheduling and the restructurings that took place in the interwar peri ...
... governments to both carry out debt restructurings and also use inflation tax. Consequently, in the three first parts of this section I will study Camacho’s arranged, voluntary debt restructuring, the Fernández Villaverde’s debt rescheduling and the restructurings that took place in the interwar peri ...
Corporate Leverage and Currency Crises - S-WoPEc
... pegged to the foreign one. The government can make investments feasible by not defending the currency and thus letting it ‡oat. The resulting equilibrium currency depreciation increases the pro…tability of new investments when revenues from the new investments are in a foreign currency and costs den ...
... pegged to the foreign one. The government can make investments feasible by not defending the currency and thus letting it ‡oat. The resulting equilibrium currency depreciation increases the pro…tability of new investments when revenues from the new investments are in a foreign currency and costs den ...
Inflating Away the Public Debt? - Centre for Economic Policy Research
... A higher inflation target has some benefits, and one of its most celebrated is to erode the real value of outstanding debt. Across centuries and countries, a common way sovereigns pay for high public debt is by having higher, and sometimes even hyper, inflation. At the same time, higher inflation is ...
... A higher inflation target has some benefits, and one of its most celebrated is to erode the real value of outstanding debt. Across centuries and countries, a common way sovereigns pay for high public debt is by having higher, and sometimes even hyper, inflation. At the same time, higher inflation is ...
Sovereign Risk, Currency Risk, and Corporate Balance Sheets.
... present evidence that the FC liabilities of emerging market firms are unlikely to be fully hedged by FC revenues or foreign exchange (FX) derivatives. We find that firms in non-tradable sectors, as well as firms in sectors with low levels of exports, borrow significant amounts in foreign currency. I ...
... present evidence that the FC liabilities of emerging market firms are unlikely to be fully hedged by FC revenues or foreign exchange (FX) derivatives. We find that firms in non-tradable sectors, as well as firms in sectors with low levels of exports, borrow significant amounts in foreign currency. I ...
How Excessive Is Banks` Maturity Transformation?∗
... direct losses coming from interbank positions (Rochet and Tirole, 1996; Allen and Gale, 2000), or through the damage that the disruption of the financial system inflicts on the rest of the economy (Kroszner, Laeven, and Klingebiel, 2007). While conceptually very valuable, existing papers do not quan ...
... direct losses coming from interbank positions (Rochet and Tirole, 1996; Allen and Gale, 2000), or through the damage that the disruption of the financial system inflicts on the rest of the economy (Kroszner, Laeven, and Klingebiel, 2007). While conceptually very valuable, existing papers do not quan ...
Felonious, Erroneous, It`s All Odious: A Story of Debt Gone Wrong
... And further unlike corporate entities, no bankruptcy mechanism currently exists to liberate a country from its debts;41 thus, sovereign entities do not have the ability to dissolve when they are unable to pay their debts.42 Even when a new government regime takes over, the country’s legal personalit ...
... And further unlike corporate entities, no bankruptcy mechanism currently exists to liberate a country from its debts;41 thus, sovereign entities do not have the ability to dissolve when they are unable to pay their debts.42 Even when a new government regime takes over, the country’s legal personalit ...
Lazard Emerging Markets Debt
... weighed on bond prices. President Nicolás Maduro is moving forward with plans to call a constitutional assembly in July, despite widespread opposition from the public, his political opponents, and even members of his own government. Iraq declined 2.6% on ...
... weighed on bond prices. President Nicolás Maduro is moving forward with plans to call a constitutional assembly in July, despite widespread opposition from the public, his political opponents, and even members of his own government. Iraq declined 2.6% on ...
sovereign debt, domestic banks and the provision of public liquidity
... the average levels of external public debt would be 66% lower. Without the liquidity effect the average levels of external public debt would be 37% lower. These two effects contribute differently to the output cost of default over different horizons. While the depth of the output cost of default is ...
... the average levels of external public debt would be 66% lower. Without the liquidity effect the average levels of external public debt would be 37% lower. These two effects contribute differently to the output cost of default over different horizons. While the depth of the output cost of default is ...
NBER WORKING PAPER SERIES RISKS OF AN ECONOMY
... So far, we have discussed how to calculate the value of debt, guarantees, and equity using the CCA approach. We now turn to how to measure the risk exposures. The values of the contingent claims on the CCA balance sheets contain embedded implicit options which can be used to obtain certain risk meas ...
... So far, we have discussed how to calculate the value of debt, guarantees, and equity using the CCA approach. We now turn to how to measure the risk exposures. The values of the contingent claims on the CCA balance sheets contain embedded implicit options which can be used to obtain certain risk meas ...
Threat of entry and debt maturity: evidence from airlines
... 6 The threat of entry can actually a↵ect the stock price, however CFOs mostly decide leverage based on book values (Graham and Harvey (2001).) 7 The latter arguments assume that firms decrease leverage issuing equity. This is however not the only way to decrease leverage. Firms can also buy back deb ...
... 6 The threat of entry can actually a↵ect the stock price, however CFOs mostly decide leverage based on book values (Graham and Harvey (2001).) 7 The latter arguments assume that firms decrease leverage issuing equity. This is however not the only way to decrease leverage. Firms can also buy back deb ...
Rating Agencies - Financial Policy Forum
... The term NRSRO was initially designed for broker-dealers in 1975 under rule 15c3-1 of the Securities Exchange Act of 1934. The purpose was to designate different levels of "haircuts" for securities used as collateral by securities broker-dealers. ...
... The term NRSRO was initially designed for broker-dealers in 1975 under rule 15c3-1 of the Securities Exchange Act of 1934. The purpose was to designate different levels of "haircuts" for securities used as collateral by securities broker-dealers. ...
Institutions, Public Debt and Foreign Finance
... purchase more public bonds, and b) expand the amount of real investment they finance per unit of their wealth. The first effect worsens the impact of default on banks’ balance sheets; the second effect boosts the extent to which such balance sheet effect causes a drop in real activity. If financial ...
... purchase more public bonds, and b) expand the amount of real investment they finance per unit of their wealth. The first effect worsens the impact of default on banks’ balance sheets; the second effect boosts the extent to which such balance sheet effect causes a drop in real activity. If financial ...
foreword - Port Phillip Publishing
... For that reason, putting into words the hardship I think Australia is going to face in the coming years has been more emotional than I expected it to be. Australia is a wonderful nation filled with great people. However, we’ve allowed ourselves to be seduced by the powerful ‘buy today, pay tomorrow’ ...
... For that reason, putting into words the hardship I think Australia is going to face in the coming years has been more emotional than I expected it to be. Australia is a wonderful nation filled with great people. However, we’ve allowed ourselves to be seduced by the powerful ‘buy today, pay tomorrow’ ...
Financial Ratio Medians-2015.indd
... of Cash Flows are needed. Net turnover-related entrance fees are the cash flows associated with residents moving into previously occupied units. By comparing the results of this ratio to the NOM, the user can determine to what extent a CCRC relies on net entrance fee receipts to enhance annual cash ...
... of Cash Flows are needed. Net turnover-related entrance fees are the cash flows associated with residents moving into previously occupied units. By comparing the results of this ratio to the NOM, the user can determine to what extent a CCRC relies on net entrance fee receipts to enhance annual cash ...
Types and Institutions of Instalment Credit
... the types of credit we are examining, although much of the present analysis is applicable to charge account credit too. Consumer real estate credit conforms with the adopted definition in all respects except its long period of repayment.1 Home mortgage financing has been excluded from the present se ...
... the types of credit we are examining, although much of the present analysis is applicable to charge account credit too. Consumer real estate credit conforms with the adopted definition in all respects except its long period of repayment.1 Home mortgage financing has been excluded from the present se ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Consumer Instalment Credit and Economic Fluctuations
... the types of credit we are examining, although much of the present analysis is applicable to charge account credit too. Consumer real estate credit conforms with the adopted definition in all respects except its long period of repayment.1 Home mortgage financing has been excluded from the present se ...
... the types of credit we are examining, although much of the present analysis is applicable to charge account credit too. Consumer real estate credit conforms with the adopted definition in all respects except its long period of repayment.1 Home mortgage financing has been excluded from the present se ...
The Financial Structure of Startup Firms: The Role of
... where ensuring the alignment of interests between managers and shareholders is more difficult. Our question: does the ranking with regard to internal funds, external debt, and external equity that comes from established-firm theory play out for startups, which have different asset and information ch ...
... where ensuring the alignment of interests between managers and shareholders is more difficult. Our question: does the ranking with regard to internal funds, external debt, and external equity that comes from established-firm theory play out for startups, which have different asset and information ch ...
par value - McGraw Hill Higher Education
... of shares of common stock the corporation is authorized to issue. • The board of directors, after a vote of the shareholders, may amend the articles of incorporation to increase the number of shares. – Authorizing a large number of shares may worry investors about dilution because authorized shares ...
... of shares of common stock the corporation is authorized to issue. • The board of directors, after a vote of the shareholders, may amend the articles of incorporation to increase the number of shares. – Authorizing a large number of shares may worry investors about dilution because authorized shares ...
Default, Debt Maturity and Investment Dynamics
... This liquidity risk motive for issuing long-term debt was first emphasized by Flannery (1986) and Diamond (1991). On the other hand, in dynamic investment models, firms lack commitment: in particular, they can take future actions, such as issuing further debt, paying out dividends, repurchasing out ...
... This liquidity risk motive for issuing long-term debt was first emphasized by Flannery (1986) and Diamond (1991). On the other hand, in dynamic investment models, firms lack commitment: in particular, they can take future actions, such as issuing further debt, paying out dividends, repurchasing out ...