By Organisation for Economic Co-Operation a

Show description

Read or Download Advances in Risk Management of Government Debt PDF

Best science (general) books

El azar y la necesidad (Ensayo sobre la filosofía natural de la biología moderna)

Ensayo sobre l. a. filosofía average de l. a. biología moderna publicado originalmente en 1970 por Jacques Monod, Premio Nobel de Medicina en 1965. Este biólogo francés formuló el teorema de que, si en cualquier proceso se suprime los angeles thought de finalidad, las cosas suceden por una combinación de azar y necesidad.

Vérités cachées, connaissances interdites

Pourquoi un médecin urgentiste à l. a. tête d’un carrier hospitalier débordé abandonnerait-il sa carrière pour annoncer au monde entier que nous ne sommes pas seuls ? Quelles sont ces choses que j ’ai personnellement vécues depuis mon enfance, qui m’ont permis de connaître les civilisations cosmiques ainsi que los angeles proposal de moral sense cosmique, et d’entrapercevoir l’extraordinaire futur qui attend l’humanité ?

Extra resources for Advances in Risk Management of Government Debt

Sample text

In practice there are relatively few examples of the use of macroeconomic models by debt managers. The key reason is that it is a very demanding and complex task to develop the tools needed formally to carry out this analysis. It may therefore be difficult to reach meaningful operational conclusions. But even if the link between the budget balance and interest rates is not explicitly modelled, it may still be used; for example, via an ad hoc analysis outside the model and via stress tests. Internal or external development of simulation models Thus far, most countries have developed their models internally.

Accrued interest and initial capital losses when issuing government securities below par). This measure is relevant when interest costs are officially calculated on an accrual basis. 20 The reason for this is that since debt is often kept to maturity and redeemed at par, swings in the market value are not materialised. Furthermore, the government’s debt portfolio is typically of a considerable size and cannot be liquidated over a short time horizon. 21 Market-value-based costs would exaggerate the changes in annual debt-service costs.

In particular refinancing risk is important for countries with a high debt level and unstable macroeconomic and financial market conditions. The distinction between interest-rate risk and refinancing risk may be less pronounced in countries with stable macroeconomic conditions and well-developed markets. The assessment of risk implies capturing the uncertainty about future debt costs. In order to assess and quantify the interest-rate risk, it is necessary to form a view of, and model, the future development in the debt, financing requirements, and interest rates at which the future debt financing takes place.

Download PDF sample

Rated 4.56 of 5 – based on 12 votes