01888cas a2200313 a 4500 AALejournalIMF000909 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451952629 1018-5941 BD-DhAAL BD-DhAAL Bartolini, Leonardo. Market Valuation of Illiquid Debt and Implications for Conflicts Among Creditors / Leonardo Bartolini, Avinash Dixit. Washington, D.C. : International Monetary Fund, 1990. 1 online resource (34 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students 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. Mode of access: Internet Debtor Country imf International Lending and Debt Problems imf Market Value imf Riskless Rate imf WP imf Dixit, Avinash. IMF Working Papers; Working Paper ; No. 1990/088 Full text available on IMF http://elibrary.imf.org/view/journals/001/1990/088/001.1990.issue-088-en.xml IMF e-Library