Read Books Online and Download eBooks, EPub, PDF, Mobi, Kindle, Text Full Free.
Debt Maturity Management With Liquidity Costs
Download Debt Maturity Management With Liquidity Costs full books in PDF, epub, and Kindle. Read online Debt Maturity Management With Liquidity Costs ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Book Synopsis Debt-Maturity Management with Liquidity Costs by : Saki Bigio
Download or read book Debt-Maturity Management with Liquidity Costs written by Saki Bigio and published by . This book was released on 2019 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We characterize the optimal debt-maturity management problem in the presence of liquidity costs. A government issues an arbitrary number of finite-maturity bonds and faces income and interest-rate risk, which can tempt it to default. Optimal issuances are spread out across maturities and are given by the ratio of a value gap over a liquidity coefficient that measures the price impact. The value gap is the proportional difference between the bond prices obtained by discounting with the international interest rates and with the domestic discount factor. This characterization allows us to quantify the contribution of different economic forces--impatience, yield-curve riding, expenditure smoothing, self-insurance, credit risk, and default incentives--in shaping the optimal debt maturity distribution. In an application, we estimate the liquidity coefficients using Spanish debt auction data and exploit the framework to evaluate Spanish debt management practices.
Book Synopsis A Framework for Debt-Maturity Management by : Saki Bigio
Download or read book A Framework for Debt-Maturity Management written by Saki Bigio and published by . This book was released on 2019 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: We characterize the optimal debt-maturity management problem of a government in a small open economy. The government issues a continuum of finite-maturity bonds in the presence of liquidity frictions. We find that the solution can be decentralized: the optimal issuance of a bond of a given maturity is proportional to the difference between its market price and its domestic valuation, the latter defined as the price computed using the government’s discount factor. We show how the steady-state debt distribution decreases with maturity. These results hold when extending the model to incorporate aggregate risk or strategic default.
Book Synopsis Systematic Risk, Debt Maturity, and the Term Structure of Credit Spreads by : Hui Chen
Download or read book Systematic Risk, Debt Maturity, and the Term Structure of Credit Spreads written by Hui Chen and published by . This book was released on 2012 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: We build a dynamic capital structure model to study the link between firms' systematic risk exposures and their time-varying debt maturity choices, as well as its implications for the term structure of credit spreads. Compared to short-term debt, long-term debt helps reduce rollover risks, but its illiquidity raises the costs of financing. With both default risk and liquidity costs changing over the business cycle, our calibrated model implies that debt maturity is pro-cyclical, firms with high systematic risk favor longer debt maturity, and that these firms will have more stable maturity structures over the cycle. Moreover, pro-cyclical maturity variation can significantly amplify the impact of aggregate shocks on the term structure of credit spreads, especially for firms with high beta, high leverage, or a lumpy maturity structure. We provide empirical evidence for the model predictions on both debt maturity and credit spreads
Book Synopsis Linking Policy to Outcomes by : Mattia Landoni
Download or read book Linking Policy to Outcomes written by Mattia Landoni and published by . This book was released on 2019 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: We characterize the long-run stable maturity distribution induced by a fixed issuance policy, defined as the maturity mix of new issues, thereby providing a method to link issuance policies with their long-run consequences. We derive closed-form expressions for a new class of forward-looking stable metrics, including per-period refinancing need, debt service cost, and average maturity -- an indicator of the supply of long-term bonds. We use these metrics to provide a normative analysis of the classical debt-management tradeoff between refinancing risk and debt service cost. Our results indicate that the US Treasury could move closer to the “efficient frontier” by tilting its issuance towards notes.
Book Synopsis Yield Curve Modeling and Forecasting by : Francis X. Diebold
Download or read book Yield Curve Modeling and Forecasting written by Francis X. Diebold and published by Princeton University Press. This book was released on 2013-01-15 with total page 223 pages. Available in PDF, EPUB and Kindle. Book excerpt: Understanding the dynamic evolution of the yield curve is critical to many financial tasks, including pricing financial assets and their derivatives, managing financial risk, allocating portfolios, structuring fiscal debt, conducting monetary policy, and valuing capital goods. Unfortunately, most yield curve models tend to be theoretically rigorous but empirically disappointing, or empirically successful but theoretically lacking. In this book, Francis Diebold and Glenn Rudebusch propose two extensions of the classic yield curve model of Nelson and Siegel that are both theoretically rigorous and empirically successful. The first extension is the dynamic Nelson-Siegel model (DNS), while the second takes this dynamic version and makes it arbitrage-free (AFNS). Diebold and Rudebusch show how these two models are just slightly different implementations of a single unified approach to dynamic yield curve modeling and forecasting. They emphasize both descriptive and efficient-markets aspects, they pay special attention to the links between the yield curve and macroeconomic fundamentals, and they show why DNS and AFNS are likely to remain of lasting appeal even as alternative arbitrage-free models are developed. Based on the Econometric and Tinbergen Institutes Lectures, Yield Curve Modeling and Forecasting contains essential tools with enhanced utility for academics, central banks, governments, and industry.
Book Synopsis Debt Management by : United States. General Accounting Office
Download or read book Debt Management written by United States. General Accounting Office and published by . This book was released on 2001 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis The Maturity Structure of Debt by : Fabio Schiantarelli
Download or read book The Maturity Structure of Debt written by Fabio Schiantarelli and published by World Bank Publications. This book was released on 1997 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Author :International Monetary Fund Publisher :International Monetary Fund ISBN 13 :1498328148 Total Pages :367 pages Book Rating :4.4/5 (983 download)
Book Synopsis Accompanying Document to the Guidelines for Public Debt Management by : International Monetary Fund
Download or read book Accompanying Document to the Guidelines for Public Debt Management written by International Monetary Fund and published by International Monetary Fund. This book was released on 2002-11-21 with total page 367 pages. Available in PDF, EPUB and Kindle. Book excerpt: NULL
Book Synopsis Guidelines for Public Debt Management -- Amended by : International Monetary Fund
Download or read book Guidelines for Public Debt Management -- Amended written by International Monetary Fund and published by International Monetary Fund. This book was released on 2003-09-12 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: NULL
Book Synopsis Medium-Term Debt Management Strategy by : Mr.Emre Balibek
Download or read book Medium-Term Debt Management Strategy written by Mr.Emre Balibek and published by International Monetary Fund. This book was released on 2019-05-15 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report provides guidance on using the Analytical Tool of the Medium-Term Debt Management Strategy (MTDS). The MTDS framework consists of a methodology, published as the ‘Guidance Note for Developing a Medium-Term Debt Management Strategy’, and an associated analytical tool (AT) that can be used to assess the cost-risk trade-offs of alternative strategies to help identify the preferred strategy. The MTDS framework supported by the AT quantitative analysis helps to determine the financing strategy. The chosen debt management strategy sets out the financing composition path to meet the debt management objective(s). The profile of future interest payments and the amortizations of new debt are driven by the debt management strategy. The MTDS AT is based on annual cash flow. Although this assumption is enough for analyzing alternative debt management strategies, in some cases, particularly for countries that are heavily dependent on short-term securities with maturities of less than a year, it would be helpful to work with cash flows with higher frequency.
Book Synopsis What are the Consequences of Active Management of Average Debt Maturity in Terms of Cost and Risk? by :
Download or read book What are the Consequences of Active Management of Average Debt Maturity in Terms of Cost and Risk? written by and published by . This book was released on 2007 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Why Do Firms Market Time Debt Maturity --- A Trade-Off Theory Based Explanation by : Ziemowit Bednarek
Download or read book Why Do Firms Market Time Debt Maturity --- A Trade-Off Theory Based Explanation written by Ziemowit Bednarek and published by . This book was released on 2015 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: Evidence shows that firms market time their debt maturity. Specifically, maturity is found to be inversely proportional to the term spread (the difference between long and short-term Treasury yield). That is, firms issue short-term debt when the term spread is large and they increase maturity as the term spread decreases. In this article, we build a model explaining the market timing phenomenon using the trade-off theory of capital structure. Our explanation relies on the balance between the bankruptcy cost and the debt issuance transaction cost. When the term spread is large, bankruptcy costs outweigh transaction costs. Firms reduce debt maturity as it lowers bankruptcy probability. In the same spirit, firms increase maturity to lower transaction cost when the term spread is small. With our model, we also link maturity with leverage, loss given default, and frequency of capital structure adjustment. Our result does not depend on the presence of either liquidity shocks or agency costs or imperfect information. Finally, we empirically corroborate our theory.
Book Synopsis Debt Maturity, Risk, and Asymmetric Information by :
Download or read book Debt Maturity, Risk, and Asymmetric Information written by and published by . This book was released on 2004 with total page 64 pages. Available in PDF, EPUB and Kindle. Book excerpt: "We test the implications of Flannery's (1986) and Diamond's (1991) models concerning the effects of risk and asymmetric information in determining debt maturity, and we examine the overall importance of informational asymmetries in debt maturity choices. We employ data on over 6,000 commercial loans from 53 large U.S. banks. Our results for low-risk firms are consistent with the predictions of both theoretical models, but our findings for high-risk firms conflict with the predictions of Diamond's model and with much of the empirical literature. Our findings also suggest a strong quantitative role for asymmetric information in explaining debt maturity"--Abstract.
Book Synopsis Debt Management by : John D. Finnerty
Download or read book Debt Management written by John D. Finnerty and published by Oxford University Press, USA. This book was released on 2001 with total page 468 pages. Available in PDF, EPUB and Kindle. Book excerpt: When companies need fuel to grow, bonds may be the way to go. Traditional blue-chip firms and dot-com startups alike can use debt strategically as a key financial instrument. The critical challenge, however, is integrating corporate debt into core business strategies and established financial policies. This practical book provides practitioners in every industry with a comprehensive, prudent approach to managing corporate debt obligations. Written by leading experts in the field and drawing from case studies of real companies, Debt Management walks financial professional through the entire decision-making process--from designing debt issues to retiring debt through bond redemptions and bond repurchases, all to meet corporate financial objectives. Unique in its presentation of the issuer's perspective--that is, it looks at debt from the company's viewpoint, and not just the buyer's or underwriter's--this work will be the industry reference on debt management and the corporate financier's desktop consultant for years to come. With insights into how factors such as bond valuation methodologies, derivatives, and tax and regulatory restrictions affect the process, the authors provide practitioners in both the U.S. and international debt markets with the information and tools needed to make smart debt-management decisions. With first-rate thinking in finance, while keeping the complex mathematics to a minimum, this volume will prove as handy as it is indispensable--the essential reference for planning, implementing, and managing corporate debt with discretion and confidence.
Book Synopsis Debt Maturity Structure by : Sang-Gyung Jun
Download or read book Debt Maturity Structure written by Sang-Gyung Jun and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Guidelines for Public Debt Management by : International Monetary Fund
Download or read book Guidelines for Public Debt Management written by International Monetary Fund and published by International Monetary Fund. This book was released on 2001-11-12 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: The IMF/World Bank publication 'Guidelines for public debt management: accompanying documents and selected case studies' (2003, ISBN 1589061942) is also available.
Book Synopsis Debt Maturity Management and Shareholder Wealth Effects by : David R. Lange
Download or read book Debt Maturity Management and Shareholder Wealth Effects written by David R. Lange and published by . This book was released on 1989 with total page 500 pages. Available in PDF, EPUB and Kindle. Book excerpt:
