The Stupendous Modernity of the First Government Loan for Institutionals in 1555

Georges Gallais-Hamonno

No 09-039.RS, Working Papers CEB from ULB -- Universite Libre de Bruxelles

Abstract: In order to finance the Italian war, Henry II ‘financial advisers have made in 1555 an enormous financial operation in LYON – then the French financial capital: a huge debt consolidation plus a cash issue. This issue was outstandingly “modern” by at least three aspects. 1. The subscription was reserved to the institutional investors --- the merchant-bankers. 2. For the first time, the amortization took the form of a 41-quarterly –constant-annuities system. 3. Because of a huge demand, an incredible system of “assimilation” of new loans has been organized. The end of this loan is as stupendous as its technics: less than two years later, the Royal government defaulted and only 9% of the total issue has been repaid according to schedule.

Keywords: Government loans of 1555; Amortization and assimilation technics; Government bankruptcy (search for similar items in EconPapers)
JEL-codes: G00 H63 N23 (search for similar items in EconPapers)
Pages: 15 p.
Date: 2009
New Economics Papers: this item is included in nep-his
References: Add references at CitEc
Citations:

Published by:

Downloads: (external link)
https://dipot.ulb.ac.be/dspace/bitstream/2013/5399 ... ol_wpaper_09-039.pdf RePEc_sol_wpaper_09-039 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sol:wpaper:09-039

Ordering information: This working paper can be ordered from
http://hdl.handle.ne ... ulb.ac.be:2013/53990

Access Statistics for this paper

More papers in Working Papers CEB from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels ().