scholarly journals Managing the UK National Debt 1694–2018

2020 ◽  
Vol 12 (3) ◽  
pp. 227-257
Author(s):  
Martin Ellison ◽  
Andrew Scott
Keyword(s):  
Market Price ◽  
Cash Flows ◽  
Debt Management ◽  
Cost Of Debt ◽  
Substantial Cost ◽  
Operational Risks ◽  
The Government ◽  
Individual Bond ◽  
The Uk ◽  
The Cost

We examine UK debt management using a new monthly dataset on the quantity and market price of every individual bond issued by the government since 1694. Our bond-by-bond dataset identifies variations in the market value of debt and so captures investors’ one-period holding returns, which is the cost of debt management in the government’s intertemporal budget constraint. We find a substantial cost advantage in favor of issuing short bonds, even when considering some of the operational risks implied by cash flows and gross redemptions. (JEL F34, G15, H63, N23, N24, N43, N44)

Turning Around Distressed Project Finance Assets in India: What More Needs to Be Done?

2018 ◽  
Keyword(s):  
Cash Flows ◽  
Project Finance ◽  
Cost Of Debt ◽  
Risk Allocation ◽  
Debt Overhang ◽  
Balance Sheets ◽  
Infrastructure Project ◽  
Bankruptcy Code ◽  
The Cost ◽  
Future Cash Flows

With the Insolvency and Bankruptcy Code firmly in place, India’s distressed project finance assets are turning out to be attractive to institutional investors. Project finance assets need asset-and deal-specific financing solutions in order to achieve successful turnarounds. The turnaround solution must ensure optimum risk allocation and mitigation leading to the buildup of future cash flows. This will, in turn, lead to deleveraging of stressed balance sheets. The authors present a conceptual model and argue that even now the political and regulatory risks for infrastructure project loans in India have not been completely mitigated. This has resulted in a situation of a debt overhang, wherein even economically viable projects may not attract fresh funding. To address this, the article suggests the possible use of priority funding structures, where existing lenders cede charge of the assets in favor of a new lender as a way to reduce the cost of debt and unlock shareholder value. This solution will also ensure that the restructuring package is properly priced (from the project finance lender’s perspective), resulting in the efficiency and viability of the restructured asset.

Part I Financial Markets, 3 UK Central Banking and Financial Stability

2021 ◽  
Author(s):  
Morton Guy ◽  
Marsh Andrew
Keyword(s):  
Central Bank ◽  
Financial Stability ◽  
Central Banking ◽  
Debt Management ◽  
National Debt ◽  
Legal Tender ◽  
Bank Of England ◽  
The Government ◽  
The Uk ◽  
William Iii

This chapter talks about the Bank of England as the UK's central bank, which was established in 1694 by a Charter granted by King William III and Queen Mary II under the authority of an Act of Parliament. It explains the principal object of the Act in creating the Bank as a vehicle for raising money for the government. It also discusses how the Bank was closely associated with the raising and management of the national debt since its inception, which is a function that the Bank retained until the creation of the UK Debt Management Office (DMO) in 1998. This chapter highlights how the Bank raised money by issuing of banknotes, which became widely used as a convenient means of making large—value payments. It points out that the Bank of England notes were not formally legal tender until 1833.

Part III UK Derivatives, Money, and Debt Markets, 10 UK Government Debt Management and the Gilt Market

2021 ◽  
Keyword(s):  
Cash Flows ◽  
Debt Management ◽  
Management Policy ◽  
Risk Appetite ◽  
Different Types ◽  
Financing Costs ◽  
The Uk ◽  
Executive Agency ◽  
Over Time

This chapter provides an overview of the UK Debt Management Office (DMO) that was established on 1 April 1998 and was tasked to manage government wholesale sterling debt issuance, which was originally the Bank of England's responsibility. It highlights the DMO's purpose on carrying out the government's debt management policy of minimising financing costs over the long term and minimising cost to offset the government's net cash flows while operating in a risk appetite approved by Ministers. It also points out that the DMO, in institutional terms, is legally and constitutionally part of HM Treasury (HMT) as an executive agency. This chapter discusses the gilt market, which is comprised of two different types of securities: conventional gilts and index—linked gilts. It compares the different types of gilt and shows how the breakdown of the gilt market has changed over time.

scholarly journals Alternative futures for Government of Canada debt management

2020 ◽  
Vol 12 (4) ◽  
pp. 659-685
Author(s):  
Corey Garriott ◽  
Sophie Lefebvre ◽  
Guillaume Nolin ◽  
Francisco Rivadeneyra ◽  
Adrian Walton
Keyword(s):  
Secondary Market ◽  
Market Liquidity ◽  
Debt Management ◽  
Active Management ◽  
Alternative Futures ◽  
Government Bonds ◽  
Content Type ◽  
The Government ◽  
Government Of Canada ◽  
The Cost

Purpose This paper aims to present four blue-sky ideas for lowering the cost of the Government of Canada’s debt without increasing the debt’s risk profile. Design/methodology/approach The authors argue that each idea would improve the secondary-market liquidity of government debt, thereby increasing the demand for government bonds, and thus, lowering their cost at issuance. Findings The first two ideas would improve liquidity by enhancing the active management of the government’s debt through market operations used to support the liquidity of outstanding bonds. The second two ideas would simplify the set of securities issued by the government, concentrating issuance in a smaller set of bonds that would each be more highly traded. Originality/value The authors discuss the ideas and give an account of the political, legal and operational impediments.

scholarly journals Effect of easing lockdown and restriction measures on COVID-19 epidemic projection: A case study of Saudi Arabia

PLoS ONE ◽  
2021 ◽  
Vol 16 (9) ◽  
pp. e0256958
Author(s):  
Shafiun Nahin Shimul ◽  
Angi Alradie-Mohamed ◽  
Russell Kabir ◽  
Abdulrahman Al-Mohaimeed ◽  
Ilias Mahmud
Keyword(s):  
Saudi Arabia ◽  
Negative Impact ◽  
Health Benefit ◽  
Steady Growth ◽  
Advanced Economies ◽  
The Usa ◽  
Period Data ◽  
The Government ◽  
The Uk ◽  
The Cost

Objectives In this study we compared two predictions of COVID-19 cases in the Kingdom Saudi Arabia (KSA) using pre–and post–relaxation of lockdown period data to provide an insight regarding rational exit strategies. We also applied these projections to understand economic costs versus health benefit of lockdown measures. Methods We analyzed open access data on COVID-19 cases from March 6 to January 16, 2021 in the KSA. To understand the epidemic projection during the pre- and post-lockdown period, we used two types of modeling: the SIR model, and the time series model. We also estimated the costs and benefits of lockdown- QALY gained compared to the costs of lockdown considering the payment threshold of the Government. Results Prediction using lockdown period data suggested that the epidemic might slow down significantly after 109 thousand cases and end on October 6, 2020. However, analysis with latest data after easing lockdown measures suggested that epidemic might be close to an end on October 28, 2021 with 358 thousand cases. The peak has also been shifted from May 18, 2020 to Jun 24, 2020. While earlier model predicted a steady growth in mid-June, the revised model with latest data predicted it in mid-August. In addition, we estimated that 4986 lives would have been saved if lockdown continued but the cost per life saved would be more than $378 thousand, which is way above not only the KSA threshold, but also the threshold of any other highly advanced economies such as the UK and the USA. Conclusions Our results suggest that relaxation of lockdown measures negatively impacts the epidemic. However, considering the negative impact of prolong lockdown measures on health and economy, countries must decide on the best timing and strategy to exit from such measures to safely return to normal life with minimum loss of lives and economy considering its economic and health systems’ capacity. Instead of focusing only on health, a balanced approach taking economy under consideration is recommended.

scholarly journals The Linkage between ESG Performance and Credit Ratings: A Firm-Level Perspective Analysis

2017 ◽  
Vol 12 (9) ◽  
pp. 53 ◽  
Author(s):  
Alain Devalle ◽  
Simona Fiandrino ◽  
Valter Cantino
Keyword(s):  
Credit Rating ◽  
Credit Ratings ◽  
Cash Flows ◽  
Cost Of Debt ◽  
Firm Level ◽  
Public Firms ◽  
Clear Cut ◽  
Final Sample ◽  
Decision Making Processes ◽  
The Cost

This paper investigates the effect of environmental, social, and governance (ESG) performance on credit ratings. We argue that ESG factors should be considered in the credit analysis and the creditworthiness evaluation of borrowers because they affect borrowers’ cash flows and the likelihood of default on their debt obligations. Consequently, we develop our research by firstly reviewing the literature regarding ESG commitments within financial decision-making processes and then addressing the relation between ESG performance and the cost of debt financing. We reveal no unanimous results and no clear-cut boundaries on this matter yet. Secondly, to disentangle this relationship, which is not well defined by scholars, we empirically investigate the nexus between ESG performance and credit rating issues on a sample of 56 Italian and Spanish public firms for which ESG performance in 2015 was achieved. Our final sample includes 15 variables for 56 observations: 840 items are under analysis. Our findings suggest that ESG performance, especially concerning social and governance metrics, meaningfully affects credit ratings. We do not sort out significant results referring to environmental scores, so further research is needed to investigate this ever-growing matter and strengthen this considerable nexus.

Meeting Earnings Benchmarks via Real Activities Manipulation: Debt Market Effects

2017 ◽  
Vol 35 (2) ◽  
pp. 349-378 ◽  
Author(s):  
Timothy P. Hinkel ◽  
Benjamin W. Hoffman
Keyword(s):  
Cash Flows ◽  
Cost Of Debt ◽  
Share Repurchase ◽  
Market Effects ◽  
Accruals Management ◽  
Managerial Decisions ◽  
Earnings Benchmarks ◽  
Prior Literature ◽  
The Cost ◽  
The Impact

We investigate the cost of debt effects for firms that manage earnings per share (EPS) through abnormal share repurchases. Although prior research finds a significant cost of debt decrease for firms that meet earnings benchmarks, our results suggest that firms using the abnormal share repurchase strategy realize no cost of debt decrease associated with meeting earnings benchmarks. We find some evidence of a smaller decrease in cost of debt associated with measures of abnormal decreases in cash flows but weak evidence for measures that are cash flow increasing. We also find that the effect of using abnormal stock repurchases to meet earnings benchmarks leads to smaller reductions in the cost of debt when compared with the cost reduction when earnings benchmarks are met through accruals management. This study extends prior literature regarding the effects on the cost of debt through alternative strategies to meet earnings benchmarks and will be of interest to managers as they consider the impact of their managerial decisions.

scholarly journals Trend in Cost of Cultivation of Sorghum in Andhra Pradesh and Telangana States of India

2020 ◽  
Vol 65 (4) ◽  
Author(s):  
Perka Shiva Kumar
Keyword(s):  
Andhra Pradesh ◽  
Large Scale ◽  
Public Awareness ◽  
Market Price ◽  
Fixed Costs ◽  
Processing Technologies ◽  
Cost Of Production ◽  
The Government ◽  
Log Linear ◽  
The Cost

Area and production of Sorghum in Andhra Pradesh state increased by 6.8% and 9.7% but decreased by 12.1% and 9.8% in Telangana state, respectively since the last few years whereas the average yield was increased by 2.6% in both the states. The cost of production of sorghum was raised by 11-14% but the market price was increased by 7.5% only. Cost of production C2 was overlapped with the market price up to 2012-13 but later on, the market price was lower than C2 whereas the cost of production A2 overlapped with Minimum Support Price up to 2011-12 but MSP was quite higher after 2011-12. Operational costs ranged from 62-66% and fixed costs are 34-38% out of the total cost of cultivation of sorghum. The inverse relationship between yield and cost of production has proved in the log-linear regression model at 5% level of significance, due to low productivity of crop, still, there is need to develop High Yielding Varieties at State Agriculture Universities of both the states, modern technologies are to be adopted by the farmers to improve the productivity. In view of the importance of crops the government has to raise the remunerative market price and public awareness is to be created about the nutritional importance of crops so that the cropped area might be increased. Processing industries are to be encouraged on a large scale which generates employment for the rural youth; some more need-based processing technologies are to be developed at research institutes.

scholarly journals Bays International Private Limited: Evolving Through Market Dynamics

2020 ◽  
Vol 5 (2) ◽  
Author(s):  
Saad Jamal Farooqui ◽  
Jawaid Qureshi ◽  
Madiha Zeeshan ◽  
Kamran Ahmed Soomro
Keyword(s):  
Employee Turnover ◽  
Consumer Preferences ◽  
Market Price ◽  
Cash Flows ◽  
Pertinent Literature ◽  
Political Situation ◽  
Global Brands ◽  
Urban Markets ◽  
Cosmetic Industry ◽  
The Government

Bays International was incorporated in 1996. Over the years it faced numerous challenges including: high employee turnover (particulary saleforce), limited expansion capabilities, low penetration in semi-urban markets, high operating expenses like rentals, increasing duties (on luxury products), low cash-flows, low budgets for advertising and marketing as compared to competitors, less awareness amongst consumers, volatile consumer preferences (especially by millennial), weak brands’ loyalties, counterfeits/fake products, smuggling and infiltration from grey channels, high number of foreign and local chains entering the market, price war especially with local chains, and uncertain political situation. Four interviews were conducted from management and two interviews from ex employees. Moreover, a lot of open access documents of the company were reviewed. Pertinent literature reveiew also revealed interesting insights about emerging consumer trends and cosmetic industry along with interviews of some marketing directors of leading global brands. The Bays leadership believes that key parameters are improving over time. The case covers how the company maneuvered itself since its inception and launched numerous other brands targeted towards different segments of the society, in order to steer towards growth in changing internal and external environment. The case is based on a scenario when there is yet another increase of taxes by the government in 2019 and presents troublesome situations to branding cum marketing strategy for the company to consider.

scholarly journals TATA KELOLA PRODUKSI KEDELE PADA PETANI NAGARI KOTO HILALANG DI KABUPATEN SOLOK

2013 ◽  
Vol 2 (2) ◽  
pp. 129
Author(s):  
Hasdi Aimon
Keyword(s):  
Market Price ◽  
Primary Data ◽  
Variable Cost ◽  
Fixed Cost ◽  
Selling Price ◽  
Soybean Production ◽  
National Market ◽  
Average Production ◽  
The Government ◽  
The Cost

This study is investigating and analyzing the soybean agriculture at Nagari Koto Hilalang in Solok. First of all, it will address the problems to the production of the soybean. Then the quality of the soy seed and the fertilizer which are used in the production of soy bean will be analyzed in order to optimize the harvest results. Finally, it will securitize the efficiency and the effectiveness of the soybean production. These issues will be discussed descriptively and associatively by using the primary data. There are 36 farmers which are involved in this study as the respondent. All the data were analyzed by using multiple regressions in order to optimize the production subject to the cost of production. The constant parameters are the farm land, and the labor. It finds out that the soy seed and fertilizer are giving significant influence to the soybean output. Also, the soybean production function is decreasing return to scale. The average production cost is Rp. 5.000.000 while the fixed cost is Rp.4.453.000 and variable cost is Rp. 547.000. The production soybean is 368,33 kg per hectare farm and the selling price is Rp. 12.000. As the consequence, the soybean agriculture is not benefit enough. Based on these results, it recommend to the local  government to conduct policy in the following sectors ; a) direct subsidize the price of seed and the fertilizer to the famers, b) ensuring the soybean market with national market price set by the government, c) education and training of downstream products from soybeans, so that the farmers become economically well establish

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