'Secret' buy-backs of LDC debt
Cohen, Daniel and Verdier, Thierry (1995) 'Secret' buy-backs of LDC debt. Journal of International Economics, 39, (3-4), 317-334. (doi:10.1016/0022-1996(95)01372-9).
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Description/Abstract
We analyze the buy-back of its debt by an LDC. Contrary to previous analyses of this subject, we assume that the debtor can hide its transactions behind the veil of a fictitious operator: the banks, we assume, cannot discriminate intra-bank transactions from buy-backs by the debtor itself. With this assumption, the lenders set the price by (rationally) taking account of the country's incentive to repurchase its debt. Will the debtor undertake a buy-back of its debt? The answer is a qualified yes. Large buy-backs will take place.
| Item Type: | Article |
|---|---|
| ISSNs: | 0022-1996 (print) |
| Related URLs: | |
| Keywords: | buy-back, ldc debt |
| Subjects: | H Social Sciences > HG Finance H Social Sciences > HB Economic Theory |
| Divisions: | University Structure - Pre August 2011 > School of Social Sciences > Economics |
| Item ID: | 33465 |
| Date Deposited: | 14 Dec 2007 |
| Last Modified: | 01 Jun 2011 11:31 |
| Contributors: | Cohen, Daniel (Author) Verdier, Thierry (Author) |
| Date: | November 1995 |
| Status: | Published |
| URI: | http://eprints.soton.ac.uk/id/eprint/33465 |
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