Buy-Backs and the Market Valuation of External Debt

Dooley, Michael P.

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Buy-Backs and the Market Valuation of External Debt

IMF Working Paper No. 87/58

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: 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