How factors in creditor countries affect secondary market prices for developing country debt
zler, Sule Huizinga, Harry
How factors in creditor countries affect secondary market prices for developing country debt - World Bank Washington, D.C. March 1991 - 40 p. il. - Policy, research, and external affairs working papers no. WPS 622 .
Incluye bibliografía
1. Introduction -- 2. Does bank exposure affect secondary market prices? -- 3. How does deposit insurance affect secondary market prices? -- 4. Are the results a consequence of implicit insurance? -- 5. Concluding remarks -- References -- Endnotes -- Tables.
Bank loans to many developing countries trade at a discount on the secondary market. These discounts are typically assumed to reflect only the repayment prospects of the borrower country. But the authors demonstrate that factors in the creditor countries have a major impact on secondary market prices. Their empirical investigation suggests a systematic relationship between secondary market prices and the size distribution of banks ' portfolios. There is a strong negative correlation between discounts in the secondary market and U.S. banks ' heavy exposure to developing country debt. It is estimated that every US
PRESTAMOS
MERCADO SECUNDARIO
MODELOS ECONOMETRICOS
DEUDA EXTERNA
ESTADOS UNIDOS
PAISES EN DESARROLLO
TERCER MUNDO
F 332.709172 20609
How factors in creditor countries affect secondary market prices for developing country debt - World Bank Washington, D.C. March 1991 - 40 p. il. - Policy, research, and external affairs working papers no. WPS 622 .
Incluye bibliografía
1. Introduction -- 2. Does bank exposure affect secondary market prices? -- 3. How does deposit insurance affect secondary market prices? -- 4. Are the results a consequence of implicit insurance? -- 5. Concluding remarks -- References -- Endnotes -- Tables.
Bank loans to many developing countries trade at a discount on the secondary market. These discounts are typically assumed to reflect only the repayment prospects of the borrower country. But the authors demonstrate that factors in the creditor countries have a major impact on secondary market prices. Their empirical investigation suggests a systematic relationship between secondary market prices and the size distribution of banks ' portfolios. There is a strong negative correlation between discounts in the secondary market and U.S. banks ' heavy exposure to developing country debt. It is estimated that every US
PRESTAMOS
MERCADO SECUNDARIO
MODELOS ECONOMETRICOS
DEUDA EXTERNA
ESTADOS UNIDOS
PAISES EN DESARROLLO
TERCER MUNDO
F 332.709172 20609