Risk Management of Sovereign Assets and Liabilities

By Marcel Cassard, D. F. I. Folkerts-Landau

December 1, 1997

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Marcel Cassard, and D. F. I. Folkerts-Landau Risk Management of Sovereign Assets and Liabilities, (USA: International Monetary Fund, 1997) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

In an environment of sizable and volatile capital flows and integrated international capital markets, large and unhedged net external sovereign liabilities expose countries to swings in international asset prices and to potential speculative currency attacks. The paper argues that an essential step in reducing emerging market vulnerability to such external shocks is to reform the institutional arrangements governing asset and liability management policies, so as to promote a transparent, publicly accountable, and professional incentive structure.

Subject: Asset and liability management, Banking, Currencies, Debt management, External debt, Foreign currency debt, Government debt management, Money, Public debt, Public financial management (PFM)

Keywords: Africa, Australia and New Zealand, Benchmark portfolio, Currencies, Debt management, Debt portfolio, Foreign currency, Foreign currency debt, Global, Government debt management, Long-term debt, Middle East, North America, Portfolio manager, Reserves Management, Short-term debt, Sovereign Debt Management, U.S. dollar, WP

Publication Details

Pages:

53
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1997/166
Stock No:

WPIEA1661997
ISBN:

9781451979619
ISSN:

1018-5941

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