Valuing Interest Payment Guarantees on Developing Country Debt.

This paper develops a technique to value guarantees on interest payments on developing-country debt, and provides some preliminary estimates of the cost of such guarantees. The cost of interest payment guarantees is not directly observable because a guarantee is a contingent obligation that becomes...

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التفاصيل البيبلوغرافية
مؤلف مشترك: International Monetary Fund
التنسيق: دورية
اللغة:English
منشور في: Washington, D.C. : International Monetary Fund, 1990.
سلاسل:IMF Working Papers; Working Paper ; No. 1990/018
الموضوعات:
الوصول للمادة أونلاين:Full text available on IMF
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110 2 |a International Monetary Fund. 
245 1 0 |a Valuing Interest Payment Guarantees on Developing Country Debt. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 1990. 
300 |a 1 online resource (26 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a This paper develops a technique to value guarantees on interest payments on developing-country debt, and provides some preliminary estimates of the cost of such guarantees. The cost of interest payment guarantees is not directly observable because a guarantee is a contingent obligation that becomes effective only if the debtor fails to make a certain payment. The strategy adopted in this paper is to estimate the market price that an interest payment guarantee would have if such a contract existed and were traded in financial markets. Using results from option pricing theory it is possible to calculate the price that an 'interest guarantee contract' would carry in financial markets on the basis of the price of developing-country debt in secondary markets. 
538 |a Mode of access: Internet 
651 7 |a United States  |2 imf 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 1990/018 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/1990/018/001.1990.issue-018-en.xml  |z IMF e-Library