Analysis of Self-Financed Buy-Backs and Asset Exchanges

9 Pages Posted: 15 Feb 2006

See all articles by Michael P. Dooley

Michael P. Dooley

University of California at Santa Cruz; National Bureau of Economic Research (NBER)

Date Written: May 10, 1988

Abstract

Buy-backs of external debt financed by the debtor through asset sales generally result in unchanged or lower market prices for remaining debt. The contractual value of debt is reduced by some multiple of the market value of assets sold. The use of assets as collateral for new debt that is exchanged for old debt has effects equivalent to buy-backs financed by sales of the same assets.

JEL Classification: 4330, 4412

Suggested Citation

Dooley, Michael P., Analysis of Self-Financed Buy-Backs and Asset Exchanges (May 10, 1988). IMF Working Paper No. 88/39. Available at SSRN: https://ssrn.com/abstract=884753

Michael P. Dooley (Contact Author)

University of California at Santa Cruz ( email )

Santa Cruz, CA 95064
United States
510-459-3662 (Phone)
510-459-5900 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
31
Abstract Views
500
PlumX Metrics