Buy-Backs and the Market Valuation of External Debt

16 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: September 10, 1987

Abstract

This paper analyzes "buy-backs" and "debt-equity swaps" involving external debt of developing countries. It is argued that if such programs are expected to be successful in increasing the market value of remaining debt, they also lead to a roughly equivalent increase in prices at which a buy-back or debt-equity swap could be carried out.

JEL Classification: 4330, 4412

Suggested Citation

Dooley, Michael P., Buy-Backs and the Market Valuation of External Debt (September 10, 1987). IMF Working Paper No. 87/58, Available at SSRN: https://ssrn.com/abstract=884866

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