On the Information Content of Ldc Secondary Loan Market Prices /

This note examines the impact of measurable and unmeasurable (not correlated with observed aggregates) information on secondary market LDC loan prices. The Institutional Investor country risk ratings are used to construct a proxy for the non-quantifiable information that moves debt market values. Re...

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Bibliografski detalji
Glavni autor: Stone, Mark
Format: Žurnal
Jezik:English
Izdano: Washington, D.C. : International Monetary Fund, 1991.
Serija:IMF Working Papers; Working Paper ; No. 1991/020
Teme:
Online pristup:Full text available on IMF
Opis
Sažetak:This note examines the impact of measurable and unmeasurable (not correlated with observed aggregates) information on secondary market LDC loan prices. The Institutional Investor country risk ratings are used to construct a proxy for the non-quantifiable information that moves debt market values. Regression results indicate that market participants use both macroeconomic aggregates and unmeasurable information to price LDC loans. This implies that price changes unrelated to observables need not raise concerns regarding price reliability, and, in fact, such price movements may well be conveying important information not quantified elsewhere.
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Opis:1 online resource (18 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Pristup:Electronic access restricted to authorized BRAC University faculty, staff and students