Market Valuation of Illiquid Debt and Implications for Conflicts Among Creditors /

We develop a formula for the market value of debt when the borrower's repayment capacity varies stochastically, and shortfalls are rolled over. The value of a marginal dollar of nominal claim is an S-shaped function of the ratio of the repayment capacity to the amount of nominal debt. Shifts of...

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Dades bibliogràfiques
Autor principal: Bartolini, Leonardo
Altres autors: Dixit, Avinash
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 1990.
Col·lecció:IMF Working Papers; Working Paper ; No. 1990/088
Matèries:
Accés en línia:Full text available on IMF
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245 1 0 |a Market Valuation of Illiquid Debt and Implications for Conflicts Among Creditors /  |c Leonardo Bartolini, Avinash Dixit. 
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490 1 |a IMF Working Papers 
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500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
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520 3 |a We develop a formula for the market value of debt when the borrower's repayment capacity varies stochastically, and shortfalls are rolled over. The value of a marginal dollar of nominal claim is an S-shaped function of the ratio of the repayment capacity to the amount of nominal debt. Shifts of this curve are examined in response to changes in the underlying parameters. The calculations bring out some conflicts of interest among lenders of differing degrees of seniority. Most surprisingly, junior creditors gain when the loan is rescheduled on terms more favorable to the debtor. 
538 |a Mode of access: Internet 
650 7 |a Debtor Country  |2 imf 
650 7 |a International Lending and Debt Problems  |2 imf 
650 7 |a Market Value  |2 imf 
650 7 |a Riskless Rate  |2 imf 
650 7 |a WP  |2 imf 
700 1 |a Dixit, Avinash. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 1990/088 
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