Modern Trends In GDP-Linked Securities Design

• Authors: Arutyun W. Amalian , Nataly D. Amalyan

Abstracts

EN

Numerous research papers substantiate the idea that GDP-linked bonds could provide a potential means for indebted countries to avoid default (the cost of which to be measured by an endowment loss and temporary exclusion from capital markets) by linking current reduction of the total outstanding debt with liabilities to share future gains of growth of national economy. Actualization of this idea has already taken place in a dozen of countries. This article presents comparative analysis of background, terms and condition of the last three cases of GDP-indexed bonds emission – by Argentina, Greece and Ukraine. Commensuration of the share of haircut, threshold for payments and availability of the cap provides for detection of trends in the design of these debt instruments.

Keywords

EN

GDP-linked bonds; warrants; moral hazard; debt restructuring; cap; hair-cut

• Publisher: Wyższa Szkoła Ekonomiczno-Humanistyczna w Bielsku-Białej
• Journal: MIND Journal
• Year: 2020
• Issue: 9
• Pages: 1-14

Contributors

author

Arutyun W. Amalian

author

Nataly D. Amalyan

Identifiers

DOI

10.36228/MJ.9/2020.4

Biblioteka Nauki

1403605