Post by arfanho7 on Feb 24, 2024 1:23:07 GMT -6
In light of this trend we revisit sovereign debt sustainability and incentives to default when the sovereign is temporarily excluded from capital markets. Differently from previous analyses we assume that in addition to accumulating international reserves countries can borrow internationally using their own currency. debt models all in foreign currency the asset valuation effects occasioned by currency depreciation or appreciation act to absorb global shocks and render consumption smoother.
In this setting countries do not accumulate high levels of reserves to be depleted in “bad” times. Instead issuing domestic debt while accumulating high levels of reserves acts as a hedge against negative external shocks. A quantitative exercise in which our model matches features of the Brazilian economic fluctuations Egypt WhatsApp Number List and exchange rate volatility suggests this strategy to be highly effective for smoothing consumption and reducing the occurrence of default. Download working paper http hbs faculty Pages item.aspx num Accounting Data Market Values and the Cross Section of Expected Returns Worldwide.
By Chattopadhyay Akash Matthew R. Lyle and Charles C.Y. Wang ABSTRACT—Under fairly general assumptions expected stock returns are a linear combination of two accounting fundamentals book to market and ROE. Empirical estimates based on this relation predict the cross section of out of sample returns in of international equity markets with a highly significant average slope coefficient of . . In sharp contrast standard factor model based proxies fail to exhibit predictive power internationally.
In this setting countries do not accumulate high levels of reserves to be depleted in “bad” times. Instead issuing domestic debt while accumulating high levels of reserves acts as a hedge against negative external shocks. A quantitative exercise in which our model matches features of the Brazilian economic fluctuations Egypt WhatsApp Number List and exchange rate volatility suggests this strategy to be highly effective for smoothing consumption and reducing the occurrence of default. Download working paper http hbs faculty Pages item.aspx num Accounting Data Market Values and the Cross Section of Expected Returns Worldwide.
By Chattopadhyay Akash Matthew R. Lyle and Charles C.Y. Wang ABSTRACT—Under fairly general assumptions expected stock returns are a linear combination of two accounting fundamentals book to market and ROE. Empirical estimates based on this relation predict the cross section of out of sample returns in of international equity markets with a highly significant average slope coefficient of . . In sharp contrast standard factor model based proxies fail to exhibit predictive power internationally.
