Pricing Growth-Indexed Bonds /

Growth-indexed bonds have been suggested as a way of reducing the procyclicality of emerging-market countries' fiscal policies and the likelihood of costly debt crises. Investor attitude surveys suggest that pricing difficulties are seen as a considerable obstacle. In an effort to reduce such c...

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Bibliografske podrobnosti
Glavni avtor: Mauro, Paolo
Drugi avtorji: Chamon, Marcos
Format: Revija
Jezik:English
Izdano: Washington, D.C. : International Monetary Fund, 2005.
Serija:IMF Working Papers; Working Paper ; No. 2005/216
Online dostop:Full text available on IMF
Opis
Izvleček:Growth-indexed bonds have been suggested as a way of reducing the procyclicality of emerging-market countries' fiscal policies and the likelihood of costly debt crises. Investor attitude surveys suggest that pricing difficulties are seen as a considerable obstacle. In an effort to reduce such concerns, this article presents a simple way of pricing growth-indexed bonds. As a pleasant by-product, the analysis tracks the quantitative implications of an increase in the share of growth-indexed bonds in total debt, measuring the ensuing decline in the probability of default and the reduction in the spreads at which standard bonds can be issued.
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Fizični opis:1 online resource (26 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Dostop:Electronic access restricted to authorized BRAC University faculty, staff and students