Advanced Search
MyIDEAS: Login

Sovereign Risk and Asset and Liability Management—Conceptual Issues

Contents:

Author Info

  • Udaibir S. Das
  • Yinqiu Lu
  • Michael G. Papaioannou

    ()
    (International Monetary Fund USA)

  • Iva Petrova
Registered author(s):

    Abstract

    Country practices towards managing financial risks on a sovereign balance sheet continue to evolve. Each crisis period, and its legacy on sovereign balance sheets, reaffirms the need for strengthening financial risk management. This paper discusses some salient features embedded in the current generation of sovereign asset and liability management (SALM) approaches, including objectives, definitions of relevant assets and liabilities, and methodologies used in obtaining optimal SALM outcomes. These elements are used in developing an analytical SALM framework which could become an operational instrument in formulating asset management and debtor liability management strategies at the sovereign level. From a portfolio perspective, the SALM approach could help detect direct and derived sovereign risk exposures. It allows analyzing the financial characteristics of the balance sheet, identifying sources of costs and risks, and quantifying the correlations among these sources of risk. The paper also outlines institutional requirements in implementing an SALM framework and seeks to lay the ground for further policy and analytical work on this topic

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.lifescienceglobal.com/home/cart?view=product&id=722
    Download Restriction: no

    Bibliographic Info

    Article provided by Lifescience Global in its journal Journal of Reviews on Global Economics.

    Volume (Year): 2 (2013)
    Issue (Month): ()
    Pages: 330-355

    as in new window
    Handle: RePEc:lif:jrgelg:v:2:y:2013:p:330-355

    Contact details of provider:
    Web page: http://www.lifescienceglobal.com

    Related research

    Keywords: Sovereign asset and liability management; sovereign balance sheet; reserve management; debt management;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:lif:jrgelg:v:2:y:2013:p:330-355. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Faisal Ameer Khan).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.