Скачать или смотреть 2018 Sovereign Debt Management Forum breakout session 8 Liability Management Operations

Managing refinancing risk is a bigger challenge when interest rates worldwide start moving up and inflows to emerging markets subside. Floating rate, foreign currency and short-term debt can pose risks for refinancing debt as cost gets higher. Moreover, the expected volatility associated with the increasing interest rates should make the timing of accessing international markets more critical. Liability management operations have been widely used by debt managers to reduce rollover and market risk, and achieve a smoother debt redemption profile. Some countries have also relied on innovative structures to reduce the execution risk of international market issuances. Others have been supporting their risk management through derivatives to hedge their foreign currency and interest rate exposures. This breakout session not only discusses the objectives of liability management operations, the trends and in which context they should be used but also the costs associated with extensive reliance on them.