Riacquisto di debito pubblico: estero e interno
Over the last decade, both highly indebted countries and OECD countries have repurchased part of their outstanding debt, the former usually at substantial discounts on the face value. The main objectives of a debt repurchase are to reduce both the risks and the costs of debt service. The risk that is considered is refinancing risk. Then, buybacks could help reducing the costs of indebtedness for three reasons. They can help reducing the outstanding debt and they can be a way to increase the liquidity of the secondary market by switching from illiquid to liquid bonds. Finally, buybacks could be used to eliminate “unfair” risk premium since they can make a government enhance its commitment to an announced policy.
Volume (Year): 92 (2002)
Issue (Month): 4 (July-August)
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