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Author : International Monetary Fund Publisher : International Monetary Fund Page : 28 pages File Size : 55,7 Mb Release : 1989-08-21 Category : Business & Economics ISBN : 9781451962390
Pricing An Interest Payment Guarantee by International Monetary Fund Pdf
This paper describes an approach for computing the market value of an interest guarantee on a bond where the principal is fully collateralized and which is exchanged for discounted sovereign debts. The cost of the insurance is determined on the basis of a simple option pricing model according to the theory of contingent claims. This method offers the advantage over previously proposed approaches by drawing a distinction between different classes of creditors that may wish to select different levels of insurance protection, recognizing thereby the leverage opportunities that arise from the existence of differing views on the credit risk of the sovereign borrower and different operational environments of the creditors.
Author : International Monetary Fund Publisher : International Monetary Fund Page : 26 pages File Size : 43,5 Mb Release : 1990-01-01 Category : Business & Economics ISBN : 9781451922721
Valuing Interest Payment Guarantees on Developing Country Debt by International Monetary Fund Pdf
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.
IMF Staff papers by International Monetary Fund. Research Dept. Pdf
The transition strategy from administratively set interest rates to market rates is discussed. Despite worldwide trends toward financial liberalization, few monetary authorities are prepared to accept as reasonable any interest rate level that is market determined. The paper suggests some helpful indicators to assess the adequacy of interest rates and discusses factors that contribute to a smooth liberalization process. The main conclusion is that interest rate liberalization is not synonymous with laissez-faire policies, but requires the replacement of the administratively set interest rates by indirect monetary management techniques that operate through the market.
IFC Lessons of Experience Paper No. 3. Describes the International Finance Corporation's (IFC's) 20 years of leasing experience in developing countries and assesses the developmental impact of leasing. The IFC has invested in leasing companies in more than half of the developing countries that have a leasing industry today.
Bond and Money Markets: Strategy, Trading, Analysis by Moorad Choudhry Pdf
Bond and Money Markets: Strategy, Trading, Analysis explains and analyses all aspects of the bond and money markets and is both an introduction for newcomers and an advanced text for experienced market practitioners and graduate students. Those with experience of the industry at all levels will find the book invaluable as a standard reference work.The book features coverage of: Government and Corporate bonds, Eurobonds, callable bonds, convertibles Asset-backed bonds including mortgages and CDOs Derivative instruments including bond futures, swaps, options, structured products, and option valuation models Interest-rate risk, duration analysis, convexity, and the convexity bias The money markets, repo markets, basis trading, and asset / liability management Term structure models, estimating and interpreting the yield curve Portfolio management, including total return framework, portfolio strategies, and constructing bond indices and valuable insight into: Trading and hedging strategy Charting and technical analysis The latest market developments, such as value-at-risk, and credit derivatives Emerging markets and the benefits of international investment The Bond and Money Markets: Strategy, Trading, Analysis is aimed at a wide readership including bond salespersons, traders, corporate financiers and graduate trainees, as well as risk managers, operations professionals and business analysts. Other market participants including fund managers, corporate treasurers, management consultants, regulators and financial journalists will also find the content useful. This book is virtually a stand alone reference book on interest rate swaps, the money markets, financial market mathematics, interest-rate futures and technical analysis Includes some introductory coverage of very specialised topics (for which one requires specialised texts) such as VaR, Asset & liability management, credit derivatives Combines accessible style with advanced level topics, plus review of latest research
The revised and updated fourteenth edition of Investments: Analysis and Management explains the essentials of investing and supports good investment decisions. More than a simple introduction to the subject, this comprehensive textbook prepares students to handle real-world investment problems and controversies in a clear and accessible manner. Emphasizing readability, Authors Charles Jones and Gerald Jensen minimize complex formulas and simplify difficult material—enabling students of all levels and backgrounds to follow the entire discussion and delve further into the subject. Ideally suited for beginning courses in investments, this textbook is designed as a practical guide to help students gain foundational knowledge of investing and develop the analytic skills necessary for deciphering investment issues. Carefully organized chapters guide students through fundamental investing concepts, portfolio and capital market theory, common stock analysis and valuation, fixed-income and derivative securities, the specifics of security analysis and portfolio management, and more. A broad range of pedagogical tools—including bulleted summaries, numbered examples, spreadsheet exercises, computational problems, and an extensive set of chapter review questions—strengthens student comprehension and retention.
This third volume of State Aid Uncovered reviews the main developments in the field of State aid in 2015. The past 12 months have been full of surprising twists and turns in the evolution of the concept of State aid. EU courts have ruled on issues such as public pronouncements and State resources, while the Commission has tackled tax advantages for multinational companies and has given us new perspectives on how State aid may affect cross-border trade. Phedon Nicolaides who is Professor at the College of Europe in Bruges and the University of Maastricht, as well as Academic Director at Lexxion Training, casts a critical eye on State aid judgments and decisions of the preceding year. The book compiles articles originally published on a weekly basis on Lexxion's StateAidHub.eu. The compilation is conveniently grouped into chapters covering issues such as "Non-Economic Activities," "Selectivity," "Infrastructure," or "Recovery of Incompatible State Aid." Each article presents the main points of a court ruling or Commission decision, places them in the context of similar case law or practice, assesses the underlying reasoning, and identifies any inconsistencies or contradictions. The reader will benefit from a fairly comprehensive and easily accessible compilation of the main developments in State aid law and practice and will gain an insight in how State aid principles can be applied in practice.
