Search results for "Senior debt"

showing 4 items of 4 documents

The Case for Contingent Convertible Debt for Sovereigns

2015

We make the case for sovereigns to issue contingent convertible bonds as a means to forestall debt crises. These instruments contractually stipulate payment standstill, contingent on a sovereign’s credit default swap spread breaching a distress threshold. This is a financial innovation solution to the lack of sovereign debt restructuring mechanisms, limiting ex ante the likelihood of debt crises and imposing ex post risk sharing between creditors and the debtor. The new instruments are contingent contracts addressing neglected risks in sovereign debt. Building on literature for contingent convertible debt for banks we address the design of sovereign contingent debt, including market discipl…

050208 finance05 social sciencesDebt-to-GDP ratioRecourse debtFinancial systemDebtorExternal debtDebt restructuring0502 economics and businessInternal debtBusiness050207 economicsDebt levels and flowsSenior debtSSRN Electronic Journal
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Financial stress and sovereign debt composition

2015

"Published online: 19 Oct 2015"

Economics and EconometricsRecourse debtDebt-to-GDP ratioSocial SciencesFinancial systemFinancial stress0502 economics and businessEconomicsDebt ratio050207 economicsDebt levels and flowsMarketability050208 financeHoldersH12G1505 social sciencesFinancial streSettore SECS-P/02 Politica EconomicaholderExternal debtSovereign debt compositionCurrencyDebt service ratio8. Economic growthH63MaturityInternal debtG01Senior debtApplied Economics Letters
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How to pay for the debt — Coping with the Third World's crisis

1990

The Brady Plan is the first official proposal to give priority to a tangible reduction in the debtor countries' debt service burden and is thus a milestone along the path towards overcoming the international debt crisis. However, the instruments foreseen in the Plan virtually invite criticism and scepticism. What are the main inadequacies of the Brady Plan? How can the international debt strategy be developed further and made more effective?

MacroeconomicsEconomic policyEconomics Econometrics and Finance (miscellaneous)Debt-to-GDP ratioDebtorExternal debtDebt service coverage ratioIndebtednessEconomicsddc:330Business Management and Accounting (miscellaneous)Internal debtDebt levels and flowsDebt crisisSenior debt
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Risk Management Optimization for Sovereign Debt Restructuring

2015

Abstract Debt restructuring is one of the policy tools available for resolving sovereign debt crises and, while unorthodox, it is not uncommon. We propose a scenario analysis for debt sustainability and integrate it with scenario optimization for risk management in restructuring sovereign debt. The scenario dynamics of debt-to-GDP ratio are used to define a tail risk measure, termed conditional Debt-at-Risk. A multi-period stochastic programming model minimizes the expected cost of debt financing subject to risk limits. It provides an operational model to handle significant aspects of debt restructuring: it collects all debt issues in a common framework, and can include contingent claims, m…

RestructuringFinancial economicsmedia_common.quotation_subjectGeography Planning and DevelopmentRecourse debtDebt-to-GDP ratioMonetary economicsDevelopmentportfolio optimizationstochastic programmingsovereign debtSettore SECS-S/06 -Metodi Mat. dell'Economia e d. Scienze Attuariali e Finanz.Debt0502 economics and businessEconomics050207 economicsDebt levels and flowsRisk managementmedia_common050208 financebusiness.industryconditional Value-at-RiskValue-at-RiskRisk metric05 social sciencesscenario analysiGreek crisiExternal debtExpected shortfallDebt restructuringdebt restructuringInternal debtPortfolio optimizationbusinessGeneral Economics Econometrics and FinanceValue at riskSenior debtJournal of Globalization and Development
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