Risk Management of Sovereign Assets and Liabilities

Marcel Cassard and D. Folkerts-Landau

No 1997/166, IMF Working Papers from International Monetary Fund

Abstract: In an environment of sizable and volatile capital flows and integrated international capital markets, large and unhedged net external sovereign liabilities expose countries to swings in international asset prices and to potential speculative currency attacks. The paper argues that an essential step in reducing emerging market vulnerability to such external shocks is to reform the institutional arrangements governing asset and liability management policies, so as to promote a transparent, publicly accountable, and professional incentive structure.

Keywords: WP; foreign currency; benchmark portfolio; short-term debt; portfolio manager; U.S. dollar; Sovereign Debt Management; Reserves Management; long-term debt; debt portfolio; Currencies; Government debt management; Debt management; Foreign currency debt; Global; North America; Africa; Australia and New Zealand; Middle East (search for similar items in EconPapers)
Pages: 53
Date: 1997-12-01
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Citations: View citations in EconPapers (12)

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