Budget 2017-18 - Budget Paper No. 1
... equivalent to the financing task for a particular year. For example, the AOFM may decide there is merit in partially pre-funding the following year's financing task. Alternatively, the AOFM might choose to smooth issuance across several financial years in order to minimise changes in CGS supply from ...
... equivalent to the financing task for a particular year. For example, the AOFM may decide there is merit in partially pre-funding the following year's financing task. Alternatively, the AOFM might choose to smooth issuance across several financial years in order to minimise changes in CGS supply from ...
Debt Valuation, Renegotiation, and Optimal Dividend Policy
... the threshold again. When this happens they resume contractual coupon payments. We begin by exploring debt-equity swaps. It is to be noted that in the absence of taxes there is no difference between these two formulations. 1.1 Debt-equity swap We now consider our first formulation of reorganization w ...
... the threshold again. When this happens they resume contractual coupon payments. We begin by exploring debt-equity swaps. It is to be noted that in the absence of taxes there is no difference between these two formulations. 1.1 Debt-equity swap We now consider our first formulation of reorganization w ...
"International Reserves and Rollover Risk"
... unit of resources available in the next period, regardless of the cost of borrowing and the repayment decision. Thus, by issuing one-period debt and accumulating reserves, the government can only transfer resources from repayment to default states. We show this channel is not quantitatively importan ...
... unit of resources available in the next period, regardless of the cost of borrowing and the repayment decision. Thus, by issuing one-period debt and accumulating reserves, the government can only transfer resources from repayment to default states. We show this channel is not quantitatively importan ...
Banking Relationships and REIT Capital Structure - DataPro
... (2003). If public debt issuers tend to target leverage to maintain their credit ratings, it is not surprising that REITs with banking relationships have lower leverage.8 Although this result differs from Johnson’s (1998) study of nonREIT firms, such a difference is largely due to the unique characte ...
... (2003). If public debt issuers tend to target leverage to maintain their credit ratings, it is not surprising that REITs with banking relationships have lower leverage.8 Although this result differs from Johnson’s (1998) study of nonREIT firms, such a difference is largely due to the unique characte ...
Cyclicality of Credit Supply: Firm Level Evidence
... on individual firms reveals that firms getting a bank loan are likely to stay with that form of debt in the near future. The pattern is similar in most years of the study. For example, of firms receiving a loan but not issuing a bond in 2003, 27% only received a loan in 2004, 6% only issued bonds, a ...
... on individual firms reveals that firms getting a bank loan are likely to stay with that form of debt in the near future. The pattern is similar in most years of the study. For example, of firms receiving a loan but not issuing a bond in 2003, 27% only received a loan in 2004, 6% only issued bonds, a ...
Fiscal Vulnerabilities and Risks from Local Government
... Rationale. Infrastructure investment has become local governments' main strategy to foster growth and a preferred countercyclical tool, especially during the global crisis. However, local infrastructure spending has mainly been financed off-budget, either through land sales or Local Government Finan ...
... Rationale. Infrastructure investment has become local governments' main strategy to foster growth and a preferred countercyclical tool, especially during the global crisis. However, local infrastructure spending has mainly been financed off-budget, either through land sales or Local Government Finan ...
DOC - Europa.eu
... What is the procedure for adopting this Delegated Regulation? The Delegated Regulation is a delegated act of the European Commission. This is an autonomous act of the Commission which is drafted and adopted by the Commission. While the Commission has requested and taken into account the technical ad ...
... What is the procedure for adopting this Delegated Regulation? The Delegated Regulation is a delegated act of the European Commission. This is an autonomous act of the Commission which is drafted and adopted by the Commission. While the Commission has requested and taken into account the technical ad ...
12. Misunderstanding the Great Depression and the Great
... Neoclassical theory emphasizes money’s role as a means to facilitate transactions, and a falling price level implies a need for less money. On this point Milton Friedman, whom Bernanke cited as a critic of the Federal Reserve for letting Base Money fall by 1 percent per annum, argued elsewhere that ...
... Neoclassical theory emphasizes money’s role as a means to facilitate transactions, and a falling price level implies a need for less money. On this point Milton Friedman, whom Bernanke cited as a critic of the Federal Reserve for letting Base Money fall by 1 percent per annum, argued elsewhere that ...
A New Structure for US Federal Debt
... A second goal is to provide liquid and otherwise useful securities that the market desires, securities that enhance financial and macroeconomic stability, and securities that the Government has a natural adv ...
... A second goal is to provide liquid and otherwise useful securities that the market desires, securities that enhance financial and macroeconomic stability, and securities that the Government has a natural adv ...
Capital Budgeting for Small Businesses
... A barrier for many small businesses to the adoption of discounted cash flow capital budgeting techniques has been the often severe liquidity constraints caused by installment debt [27]. The purpose of this study is to examine the typical discounted cash flow models and to suggest a liquidity-sensiti ...
... A barrier for many small businesses to the adoption of discounted cash flow capital budgeting techniques has been the often severe liquidity constraints caused by installment debt [27]. The purpose of this study is to examine the typical discounted cash flow models and to suggest a liquidity-sensiti ...
The size and composition of government debt in - ECB
... The paper also seeks to present details of the composition of government debt in terms of financial instruments, currency and maturity. In the first part of this paper, the size of government debt is analysed using different concepts for the measurement of government debt. The first sub-section focu ...
... The paper also seeks to present details of the composition of government debt in terms of financial instruments, currency and maturity. In the first part of this paper, the size of government debt is analysed using different concepts for the measurement of government debt. The first sub-section focu ...
Inflation, default and sovereign debt
... The focus of the analysis implies that we abstract from other dimensions of sovereign debt portfolios, including investor exposure to exchange rate risk and the role that the jurisdiction of the market of issuance plays. In the data, we cannot distinguish between bonds that can be inated and those ...
... The focus of the analysis implies that we abstract from other dimensions of sovereign debt portfolios, including investor exposure to exchange rate risk and the role that the jurisdiction of the market of issuance plays. In the data, we cannot distinguish between bonds that can be inated and those ...
Firm Value
... The value of a firm is determined by discounting the stream of cash flows produced by its assets and operations. The age, quantity, quality and the efficiency with which those assets are utilized will determine the size of those cash flows. However, you cannot increase the size of these cash flo ...
... The value of a firm is determined by discounting the stream of cash flows produced by its assets and operations. The age, quantity, quality and the efficiency with which those assets are utilized will determine the size of those cash flows. However, you cannot increase the size of these cash flo ...
Why is fiscal policy often procyclical?
... and Persson and Tabellini (2000, chapter 4). Specifically, government policy is chosen after the elections, by the incumbent, and there is no commitment to electoral promises. Thus, there is an element of “contract incompleteness” in the political environment, and the government can only be held acc ...
... and Persson and Tabellini (2000, chapter 4). Specifically, government policy is chosen after the elections, by the incumbent, and there is no commitment to electoral promises. Thus, there is an element of “contract incompleteness” in the political environment, and the government can only be held acc ...
Macroeconomic Risk and Debt Overhang PRELIMINARY AND INCOMPLETE ∗ Hui Chen
... A fundamental question in finance is to determine the optimal investment decisions for firms. A part of this problem is pricing — the classic rule of Net Present Value (NPV) prescribes that we evaluate an investment opportunity by forecasting its future cash flows and finding an appropriate discount ...
... A fundamental question in finance is to determine the optimal investment decisions for firms. A part of this problem is pricing — the classic rule of Net Present Value (NPV) prescribes that we evaluate an investment opportunity by forecasting its future cash flows and finding an appropriate discount ...
Fundamentals of Corporate Finance, 2/e
... derived from its yield to maturity calculation. To do this, we first convert the bond data to reflect semiannual compounding as well as account for the effective annual interest rate (EAR) to account for the actual current annual cost of the debt. We must also account for the cost of issuing the bon ...
... derived from its yield to maturity calculation. To do this, we first convert the bond data to reflect semiannual compounding as well as account for the effective annual interest rate (EAR) to account for the actual current annual cost of the debt. We must also account for the cost of issuing the bon ...
Debt Maturity and the Dynamics of Leverage
... optimal to roll over maturing debt by issuing new bonds with the same face value. If the firms profitability drops sufficiently, then the equityholders reduce the rollover rate, as explained above. However, if the firm’s cash flows continue to deteriorate and the firm is pushed towards the default ...
... optimal to roll over maturing debt by issuing new bonds with the same face value. If the firms profitability drops sufficiently, then the equityholders reduce the rollover rate, as explained above. However, if the firm’s cash flows continue to deteriorate and the firm is pushed towards the default ...
NBER WORKING PAPER SERIES PUBLIC DEBT MANAGEMENT IN BRAZIL Francesco Giavazzi Alessandro Missale
... to revitalize the market for price-indexed bonds with the new NTN-B program of IPCA indexation. Although the exposure to exchange rate risk has been reduced in 2003, it is still large suggesting that more efforts should be made to reduce issuance of bonds denominated in foreign currencies. ...
... to revitalize the market for price-indexed bonds with the new NTN-B program of IPCA indexation. Although the exposure to exchange rate risk has been reduced in 2003, it is still large suggesting that more efforts should be made to reduce issuance of bonds denominated in foreign currencies. ...
... Since the landmark seminal paper by Modigliani and Miller (1958), the issue of capital structure has continued to generate great interests in finance literature. Copeland and Weston (1993) define capital structure as the permanent financing represented by longterm debt, preferred stock, and sharehol ...
Why is fiscal policy often procyclical?"
... coordinate the optimal voting strategy that minimizes their loss of welfare from this agency problem. Relative to the models of Barro (1973), Ferejohn (1986) and Persson and Tabellini (2000), we have added government debt. This makes the model truly dynamic, while the previous literature on politica ...
... coordinate the optimal voting strategy that minimizes their loss of welfare from this agency problem. Relative to the models of Barro (1973), Ferejohn (1986) and Persson and Tabellini (2000), we have added government debt. This makes the model truly dynamic, while the previous literature on politica ...
- Munich Personal RePEc Archive
... important to stress this point, not because it is not well known, but because it sets individual household debt apart from debt incurred by the business sector. In the latter sector debt finances the capital goods and working capital for a firm which enables a company to earn a cash flow out of whic ...
... important to stress this point, not because it is not well known, but because it sets individual household debt apart from debt incurred by the business sector. In the latter sector debt finances the capital goods and working capital for a firm which enables a company to earn a cash flow out of whic ...
Wealth Inequality and the Optimal Level of Government Debt
... from additional insurance are the consumption-poor, which also suffer the most from a decline in wages. Our result suggests that the negative impact government debt has on welfare via efficiency losses and the income composition channel overrides the positive effect of additional insurance. Our con ...
... from additional insurance are the consumption-poor, which also suffer the most from a decline in wages. Our result suggests that the negative impact government debt has on welfare via efficiency losses and the income composition channel overrides the positive effect of additional insurance. Our con ...
Long-duration Bonds and Sovereign Defaults
... by the government. Previous quantitative studies assume that sovereign bonds mature after one quarter. Instead, we allow the government to borrow using long-duration bonds. We assume that the government issues bonds that pay an infinite stream of coupons until a default is declared. The coupon paym ...
... by the government. Previous quantitative studies assume that sovereign bonds mature after one quarter. Instead, we allow the government to borrow using long-duration bonds. We assume that the government issues bonds that pay an infinite stream of coupons until a default is declared. The coupon paym ...
The cost of capital of levered equity is equal to the cost of capital of
... flow using the weighted average cost of capital. The value of the interest tax shield can then be found by comparing the value of the levered firm, VL, to the unlevered value, VU, of the free cash flow discounted at the firm’s unlevered cost of capital, the pretax WACC. VL = VU + PV(Interest Tax ...
... flow using the weighted average cost of capital. The value of the interest tax shield can then be found by comparing the value of the levered firm, VL, to the unlevered value, VU, of the free cash flow discounted at the firm’s unlevered cost of capital, the pretax WACC. VL = VU + PV(Interest Tax ...
Fingrid Oyj
... All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopt ...
... All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopt ...