The Evaluation of Debt Exchanges

International Monetary Fund

No 1990/009, IMF Working Papers from International Monetary Fund

Abstract: An approach is presented for analyzing debt-for-debt exchanges from the perspective of the exchange’s impact on the country’s contractual obligations and from the perspective of the creditors whose participation is sought. A general model is developed for valuing partially guaranteed debt instruments and an intuitive motivation is suggested for upper and lower bounds on the valuation of instruments carrying specific as well as rolling guarantees. An appendix presents several easily employed rules of thumb which have been suggested in the literature for valuing collateralized instruments and for estimating the possible net debt reduction achievable through their issuance.

Keywords: WP; secondary market; payment obligation; aggregate payment; rate of interest; cash payment; debt exchange; discount rate; payment maturing; unguaranteed payment; incremental value; imaginable payment sequence; debtor country; payment burden; cash value; Debt reduction; Currencies; Securities; Interest payments; Discount rates (search for similar items in EconPapers)
Pages: 48
Date: 1990-01-01
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=28119 (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:imf:imfwpa:1990/009

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().