Debt Maturity and the Use of Short-Term Debt

Debt Maturity and the Use of Short-Term Debt
Author: Sophia Chen
Publisher: International Monetary Fund
Total Pages: 77
Release: 2019-02-05
Genre: Business & Economics
ISBN: 1484397630

The maturity structure of debt can have financial and real consequences. Short-term debt exposes borrowers to rollover risk (where the terms of financing are renegotiated to the detriment of the borrower) and is associated with financial crises. Moreover, debt maturity can have an impact on the ability of firms to undertake long-term productive investments and, as a result, affect economic activity. The aim of this paper is to examine the evolution and determinants of debt maturity and to characterize differences across countries.

The Banks and the Italian Economy

The Banks and the Italian Economy
Author: Damiano Bruno Silipo
Publisher: Springer Science & Business Media
Total Pages: 242
Release: 2009-04-22
Genre: Business & Economics
ISBN: 3790821128

Damiano Bruno Silipo In the 1990s the Italian banking system underwent profound normative, institutional and structural changes. The Consolidated Law on Banking (1993) and that on Finance (1998) instituted the legal framework for a far-reaching overhaul of the Italian banking and ?nancial system: signi?cant relaxation of entry barriers, the liberalization of branching, the privatization of the Italian banks, and a massive process of mergers and acquisitions. Following the Bank of Italy’s liberalization of branching in 1990, in 10 years the number of bank branches increased by 70% in Italy, while in the rest of Europe it declined. Over the decade the average number of banks doing business in a province rose from 27 to 31, while a wave of mergers (324 operations) and acquisitions (137) revolutionized the Italian banking industry, reducing the overall number of Italian banks by 30%. To a signi?cant extent this concentration represented take-overs of troubled Southern banks by Central and Northern ones. As a result of these developments (plus a rise in banking productivity and a fall in costs), the spread between short-term lending and deposit rates fell from 7 percentage points in 1990 to 4 points in 1999. And despite an increase in concentration in a number of local credit markets, the interest-rate differential between the locally dominant and other banks generally narrowed.

China and Asia

China and Asia
Author: Yin-Wong Cheung
Publisher: Routledge
Total Pages: 316
Release: 2008-12-05
Genre: Business & Economics
ISBN: 1135971625

This book places China in the Asian international economic context, suggesting that the importance of China has sometimes been misunderstood and comparing it with the earlier Japanese experiences in a new, refreshing way.

Taxes and Business Strategy

Taxes and Business Strategy
Author: Myron S. Scholes
Publisher:
Total Pages: 528
Release: 2015-01-03
Genre:
ISBN: 9781292065571

For MBA students and graduates embarking on careers in investment banking, corporate finance, strategy consulting, money management, or venture capital Through integration with traditional MBA topics, Taxes and Business Strategy, Fifth Edition provides a framework for understanding how taxes affect decision-making, asset prices, equilibrium returns, and the financial and operational structure of firms. Teaching and Learning Experience This program presents a better teaching and learning experience-for you and your students: *Use a text from an active author team: All 5 authors actively teach the tax and business strategy course and provide students with relevant examples from both classroom and real-world consulting experience. *Teach students the practical uses for business strategy: Students learn important concepts that can be applied to their own lives. *Reinforce learning by using in-depth analysis: Analysis and explanatory material help students understand, think about, and retain information.

Capital Structure and Corporate Financing Decisions

Capital Structure and Corporate Financing Decisions
Author: H. Kent Baker
Publisher: John Wiley & Sons
Total Pages: 504
Release: 2011-03-31
Genre: Business & Economics
ISBN: 1118022947

A comprehensive guide to making better capital structure and corporate financing decisions in today's dynamic business environment Given the dramatic changes that have recently occurred in the economy, the topic of capital structure and corporate financing decisions is critically important. The fact is that firms need to constantly revisit their portfolio of debt, equity, and hybrid securities to finance assets, operations, and future growth. Capital Structure and Corporate Financing Decisions provides an in-depth examination of critical capital structure topics, including discussions of basic capital structure components, key theories and practices, and practical application in an increasingly complex corporate world. Throughout, the book emphasizes how a sound capital structure simultaneously minimizes the firm's cost of capital and maximizes the value to shareholders. Offers a strategic focus that allows you to understand how financing decisions relates to a firm's overall corporate policy Consists of contributed chapters from both academics and experienced professionals, offering a variety of perspectives and a rich interplay of ideas Contains information from survey research describing actual financial practices of firms This valuable resource takes a practical approach to capital structure by discussing why various theories make sense and how firms use them to solve problems and create wealth. In the wake of the recent financial crisis, the insights found here are essential to excelling in today's volatile business environment.

Sovereign Debt Restructurings 1950-2010

Sovereign Debt Restructurings 1950-2010
Author: Mr.Udaibir S. Das
Publisher: International Monetary Fund
Total Pages: 128
Release: 2012-08-01
Genre: Business & Economics
ISBN: 1475505531

This paper provides a comprehensive survey of pertinent issues on sovereign debt restructurings, based on a newly constructed database. This is the first complete dataset of sovereign restructuring cases, covering the six decades from 1950–2010; it includes 186 debt exchanges with foreign banks and bondholders, and 447 bilateral debt agreements with the Paris Club. We present new stylized facts on the outcome and process of debt restructurings, including on the size of haircuts, creditor participation, and legal aspects. In addition, the paper summarizes the relevant empirical literature, analyzes recent restructuring episodes, and discusses ongoing debates on crisis resolution mechanisms, credit default swaps, and the role of collective action clauses.

Global Waves of Debt

Global Waves of Debt
Author: M. Ayhan Kose
Publisher: World Bank Publications
Total Pages: 403
Release: 2021-03-03
Genre: Business & Economics
ISBN: 1464815453

The global economy has experienced four waves of rapid debt accumulation over the past 50 years. The first three debt waves ended with financial crises in many emerging market and developing economies. During the current wave, which started in 2010, the increase in debt in these economies has already been larger, faster, and broader-based than in the previous three waves. Current low interest rates mitigate some of the risks associated with high debt. However, emerging market and developing economies are also confronted by weak growth prospects, mounting vulnerabilities, and elevated global risks. A menu of policy options is available to reduce the likelihood that the current debt wave will end in crisis and, if crises do take place, will alleviate their impact.

Understanding the Use of Long-term Finance in Developing Economies

Understanding the Use of Long-term Finance in Developing Economies
Author: Mr.Maria Soledad Martinez Peria
Publisher: International Monetary Fund
Total Pages: 28
Release: 2017-04-26
Genre: Business & Economics
ISBN: 1475595751

This short paper reviews recent literature on the use of long-term finance in developing economies (relative to advanced ones) to identify where long-term financing occurs, and what role different financial intermediaries and markets play in extending this type of financing. Although banks are the most important providers of credit, they do not seem to offer long-term financing. Capital markets have grown since the 1990s and can provide financing at fairly long terms. But few firms use these markets. Only some institutional investors provide funding at long-term maturities. Governments might help to expand long-term financing, although with limited policy tools.