Where Do Firms Issue Debt?
... where to place the issuer of the debt securities (either by using an existing subsidiary or by establishing a new one in the jurisdiction of choice). To examine this decision, we employ a gravity model, which is nowadays the workhorse in international economics. Although it was mostly applied to to ...
... where to place the issuer of the debt securities (either by using an existing subsidiary or by establishing a new one in the jurisdiction of choice). To examine this decision, we employ a gravity model, which is nowadays the workhorse in international economics. Although it was mostly applied to to ...
Latin American Examples to Analyze the Euro Question
... rigidity of the currency board, or other factors remains contested. It has been suggested that there were multiple equilibria, and a particularly bad one emerged due to the interaction of the anticipation of a potential break of the currency board, low growth, concerns regarding fiscal sustainabilit ...
... rigidity of the currency board, or other factors remains contested. It has been suggested that there were multiple equilibria, and a particularly bad one emerged due to the interaction of the anticipation of a potential break of the currency board, low growth, concerns regarding fiscal sustainabilit ...
Russia`s Debt Crisis and the Unofficial Economy
... corruption and shadow economy operations, non-cash payments are one of the major characteristics of the Russian unofficial economy (Table 1). Moreover, the legal framework itself actually allows for the existence of such a system of unreported payments, where the state is typically a major player.4 ...
... corruption and shadow economy operations, non-cash payments are one of the major characteristics of the Russian unofficial economy (Table 1). Moreover, the legal framework itself actually allows for the existence of such a system of unreported payments, where the state is typically a major player.4 ...
Debt Management Strategy for India Government of India Ministry of
... pricing financial assets and maintain consistency with other macro-economic policies including monetary policy. The overall objective of the government debt management policy ...
... pricing financial assets and maintain consistency with other macro-economic policies including monetary policy. The overall objective of the government debt management policy ...
II. Private Debt - University of Sussex
... is the value of investment at the start, which is known in this setting. Given the lack of firm specific information we set LGD as 20%. Our approach is consistent with Kealhofer (2003) and Gupton and Stein (2005) who argue that LGD values should be set with reference to historical averages to avoi ...
... is the value of investment at the start, which is known in this setting. Given the lack of firm specific information we set LGD as 20%. Our approach is consistent with Kealhofer (2003) and Gupton and Stein (2005) who argue that LGD values should be set with reference to historical averages to avoi ...
Dealing with debt
... For individuals, circumstances differ hugely. Young people starting out in the housing market probably always will borrow a large proportion of the price of their first house, and a large amount relative to their current income. Such loans are risky for the individual borrower if something goes badl ...
... For individuals, circumstances differ hugely. Young people starting out in the housing market probably always will borrow a large proportion of the price of their first house, and a large amount relative to their current income. Such loans are risky for the individual borrower if something goes badl ...
staff note for the g20: state-contingent debt instruments for sovereigns
... may bring benefits to sovereigns, investors, and the global financial system. SCDIs can help sovereigns preserve policy space in bad times, complementing other selfinsurance and risk-sharing tools. In addition, SCDIs can enable sovereigns to diversify their investor base away from banks, and may enh ...
... may bring benefits to sovereigns, investors, and the global financial system. SCDIs can help sovereigns preserve policy space in bad times, complementing other selfinsurance and risk-sharing tools. In addition, SCDIs can enable sovereigns to diversify their investor base away from banks, and may enh ...
Weighted Average Cost of Capital (WACC)
... Once these dimensions have been set, the risk-free rate can be calculated as the yield to maturity of an appropriate government bond. This could be calculated as a premium over a US or Euro-bond if no appropriate domestic bonds exist. Spot rates and averages of historic rates are used in different c ...
... Once these dimensions have been set, the risk-free rate can be calculated as the yield to maturity of an appropriate government bond. This could be calculated as a premium over a US or Euro-bond if no appropriate domestic bonds exist. Spot rates and averages of historic rates are used in different c ...
LIVING (DANGEROUSLY) WITHOUT A FISCAL UNION
... Consider first the period before the crisis. The years 2002-07 were economically buoyant, sometimes described as the Greenspan Put era, when many believed that monetary policy would contain prospective damage to the economy and financial markets. Even during these years, there was a tendency for the ...
... Consider first the period before the crisis. The years 2002-07 were economically buoyant, sometimes described as the Greenspan Put era, when many believed that monetary policy would contain prospective damage to the economy and financial markets. Even during these years, there was a tendency for the ...
U.S. Household Debt, 1975- 2007
... store credit and credit cards in the 1960s and 1970s further improved access to credit. And, while women and minority groups had been excluded from credit in the post-World War II period, public policy efforts in the 1960s and 1970s provided access to these groups. (Logemann, 528) Therefore, both a ...
... store credit and credit cards in the 1960s and 1970s further improved access to credit. And, while women and minority groups had been excluded from credit in the post-World War II period, public policy efforts in the 1960s and 1970s provided access to these groups. (Logemann, 528) Therefore, both a ...
characteristics, correction and challenges
... credit standards at the international level, by the convergence of Spanish and euro area interest rates, and by the continuation of an expansionary monetary policy – provided for access to credit at a lower cost. In parallel, greater macroeconomic stability and the favourable growth expectations ass ...
... credit standards at the international level, by the convergence of Spanish and euro area interest rates, and by the continuation of an expansionary monetary policy – provided for access to credit at a lower cost. In parallel, greater macroeconomic stability and the favourable growth expectations ass ...
Economic implications of high and rising household indebtedness
... High and rapidly rising levels of household debt can be risky. A high level of debt increases the sensitivity of households to any shock to their income or balance sheet. And during periods of financial stress, highly indebted households tend to cut their spending more than their less-indebted peers ...
... High and rapidly rising levels of household debt can be risky. A high level of debt increases the sensitivity of households to any shock to their income or balance sheet. And during periods of financial stress, highly indebted households tend to cut their spending more than their less-indebted peers ...
Bulletin Reserve Bank of New Zealand Economic implications of
... High and rapidly rising levels of household debt can be risky. A high level of debt increases the sensitivity of households to any shock to their income or balance sheet. And during periods of financial stress, highly indebted households tend to cut their spending more than their less-indebted peers ...
... High and rapidly rising levels of household debt can be risky. A high level of debt increases the sensitivity of households to any shock to their income or balance sheet. And during periods of financial stress, highly indebted households tend to cut their spending more than their less-indebted peers ...
Ch 16
... rates, there is an advantage to debt. – Types of Assets • The costs of financial distress depend on the types of assets the firm has. – Uncertainty of Operating Income • Even without debt, firms with uncertain operating income have a high probability of experiencing ...
... rates, there is an advantage to debt. – Types of Assets • The costs of financial distress depend on the types of assets the firm has. – Uncertainty of Operating Income • Even without debt, firms with uncertain operating income have a high probability of experiencing ...
Alternatives jor Debt Management
... 1967. Okun’s sample period was 1946-I to 1959-III. The value of net interestbearing debt for 1953-I was $119 billion. A 1 percent shift on average represents a a switch of $1.2 billion. We have used Okun’s equation (8) presented in Tables 1 and 4. 2Robert Haney Scott, "Liquidity and the Term Structu ...
... 1967. Okun’s sample period was 1946-I to 1959-III. The value of net interestbearing debt for 1953-I was $119 billion. A 1 percent shift on average represents a a switch of $1.2 billion. We have used Okun’s equation (8) presented in Tables 1 and 4. 2Robert Haney Scott, "Liquidity and the Term Structu ...
Debt in the eurozone - the sources and the possible consequences.
... needed to repay amounts falling due. Whereas in debt reduction (described as a bail-in) in addition to rescheduling the payments the total amount of debt is reduced, something for which the creditors agree to incur the cost. Debt reduction can be achieved through a number of mechanisms including red ...
... needed to repay amounts falling due. Whereas in debt reduction (described as a bail-in) in addition to rescheduling the payments the total amount of debt is reduced, something for which the creditors agree to incur the cost. Debt reduction can be achieved through a number of mechanisms including red ...
PDF
... nobles; this would lead to faster growth and a more rapid structural transformation. Financial frictions make his impossible: the banking sector is small and relatively inefficient, and the stock market is hamstrung by government restrictions. Prejudice also plays a role, as the nobility shied away ...
... nobles; this would lead to faster growth and a more rapid structural transformation. Financial frictions make his impossible: the banking sector is small and relatively inefficient, and the stock market is hamstrung by government restrictions. Prejudice also plays a role, as the nobility shied away ...
Debt into growth: How sovereign debt accelerated the first Industrial
... nobles; this would lead to faster growth and a more rapid structural transformation. Financial frictions make his impossible: the banking sector is small and relatively inefficient, and the stock market is hamstrung by government restrictions. Prejudice also plays a role, as the nobility shied away ...
... nobles; this would lead to faster growth and a more rapid structural transformation. Financial frictions make his impossible: the banking sector is small and relatively inefficient, and the stock market is hamstrung by government restrictions. Prejudice also plays a role, as the nobility shied away ...
debt into growth: how sovereign debt accelerated the first industrial
... nobles; this would lead to faster growth and a more rapid structural transformation. Financial frictions make his impossible: the banking sector is small and relatively inefficient, and the stock market is hamstrung by government restrictions. Prejudice also plays a role, as the nobility shied away ...
... nobles; this would lead to faster growth and a more rapid structural transformation. Financial frictions make his impossible: the banking sector is small and relatively inefficient, and the stock market is hamstrung by government restrictions. Prejudice also plays a role, as the nobility shied away ...
NBER WORKING PAPER SERIES INDIVIDUAL VERSUS AGGREGATE COLLATERAL
... intensively used to understand the effects of financial liberalization in the Southern Cone of Latin America in the 1970s. In McKinnon’s model, deposit guarantees induce moral hazard, as banks tend to undertake immoderately risky projects and depositors have less incentives to monitor the quality of ...
... intensively used to understand the effects of financial liberalization in the Southern Cone of Latin America in the 1970s. In McKinnon’s model, deposit guarantees induce moral hazard, as banks tend to undertake immoderately risky projects and depositors have less incentives to monitor the quality of ...
OPTIMAL CAPITAL STRUCTURE
... the cost of debt may be information provided by banks or financial markets, but the required return on equity is an estimate. Market value of debt and equity. In a perpetuity, the debt’s market value (line 11) is equal to the annual interest payments, divided by the required return on debt (I/Kd). L ...
... the cost of debt may be information provided by banks or financial markets, but the required return on equity is an estimate. Market value of debt and equity. In a perpetuity, the debt’s market value (line 11) is equal to the annual interest payments, divided by the required return on debt (I/Kd). L ...
Growth in a Time of Debt
... tighten by reducing spending, which can also be contractionary. As for inflation, an obvious connection stems from the fact that unanticipated high inflation can reduce the real cost of servicing the debt. Of course, the efficacy of the inflation channel is quite sensitive to the maturity structure ...
... tighten by reducing spending, which can also be contractionary. As for inflation, an obvious connection stems from the fact that unanticipated high inflation can reduce the real cost of servicing the debt. Of course, the efficacy of the inflation channel is quite sensitive to the maturity structure ...
ICG: The Rise of Private Debt as an Institutional Asset Class
... continuing low yields from traditional fixed interest vehicles. The increase in both supply and demand is having a significant impact on how alternative lending funds are being used. In recent years not only has there been an influx of new entrants there is now a far greater diversity of investment ...
... continuing low yields from traditional fixed interest vehicles. The increase in both supply and demand is having a significant impact on how alternative lending funds are being used. In recent years not only has there been an influx of new entrants there is now a far greater diversity of investment ...
Paying off government debt
... faster than people are willing to pay for them. These deficits are secular in nature and generally require a restructuring of government expenditures and obligations to stop the accumulation of debt. Because of their structural nature, an outright or inflationary default is unlikely to work. Those w ...
... faster than people are willing to pay for them. These deficits are secular in nature and generally require a restructuring of government expenditures and obligations to stop the accumulation of debt. Because of their structural nature, an outright or inflationary default is unlikely to work. Those w ...
chapter summary
... The federal budget is a plan of outlays and revenues for a specified period, usually a year. As you can see from the figure below, national defense accounted for about half of all federal outlays in 1960. That share declined to only 18 percent in 2013. The share going to Social Security and Medicare ...
... The federal budget is a plan of outlays and revenues for a specified period, usually a year. As you can see from the figure below, national defense accounted for about half of all federal outlays in 1960. That share declined to only 18 percent in 2013. The share going to Social Security and Medicare ...