{
  "title": "Pricing Growth-Indexed Bonds",
  "publication": "IMF Working Papers, November 1, 2005",
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  "summary": "Growth-indexed bonds have been suggested as a way of reducing the procyclicality of emerging-market countries' fiscal policies and the likelihood of costly debt crises. Investor attitude surveys suggest that pricing difficulties are seen as a considerable obstacle.",
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      "heading": "Summary",
      "content": "- Authors: Paolo Mauro, Marcos Chamon\n- Date: November 1, 2005\n- Core proposition: Growth-indexed bonds can reduce the procyclicality of emerging-market countries' fiscal policies and lower the likelihood of costly debt crises.\n- Main barrier noted: Investor attitude surveys suggest that pricing difficulties are seen as a considerable obstacle.\n- Objective of the paper: Present a simple way of pricing growth-indexed bonds and quantify the implications of increasing their share in total debt."
    },
    {
      "heading": "Pricing approach (as described)",
      "content": "- The article presents a simple method for pricing growth-indexed bonds intended to reduce investor concerns about valuation difficulties.\n- Terminology preserved: growth-indexed bond, plain-vanilla bond."
    },
    {
      "heading": "Quantitative implications and findings",
      "content": "- Increasing the share of growth-indexed bonds in total debt is analyzed quantitatively to measure:\n  - The ensuing decline in the probability of default.\n  - The reduction in the spreads at which standard bonds can be issued.\n- No numerical results for default probabilities or spread reductions are provided on this page; the page reports that the analysis tracks these quantitative implications."
    },
    {
      "heading": "Policy relevance and implications",
      "content": "- Growth-indexed bonds are presented as a tool to:\n  - Reduce fiscal procyclicality in emerging-market countries.\n  - Decrease the likelihood of costly sovereign debt crises.\n- Addressing investor concerns about pricing simplicity could facilitate issuance and adoption.\n\n---\n\n Content in this bundle\n\n- wp05216\n  - wp05216 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp05216 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/pricing-growth-indexed-bonds-18667"
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    "Authors: Paolo Mauro, Marcos Chamon",
    "Published: November 1, 2005",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451862355.001",
    "Authors: Paolo Mauro, Marcos Chamon",
    "Date: November 1, 2005",
    "Core proposition: Growth-indexed bonds can reduce the procyclicality of emerging-market countries' fiscal policies and lower the likelihood of costly debt crises.",
    "Main barrier noted: Investor attitude surveys suggest that pricing difficulties are seen as a considerable obstacle.",
    "Objective of the paper: Present a simple way of pricing growth-indexed bonds and quantify the implications of increasing their share in total debt.",
    "The article presents a simple method for pricing growth-indexed bonds intended to reduce investor concerns about valuation difficulties.",
    "Terminology preserved: growth-indexed bond, plain-vanilla bond.",
    "Increasing the share of growth-indexed bonds in total debt is analyzed quantitatively to measure:",
    "No numerical results for default probabilities or spread reductions are provided on this page; the page reports that the analysis tracks these quantitative implications.",
    "Growth-indexed bonds are presented as a tool to:",
    "Addressing investor concerns about pricing simplicity could facilitate issuance and adoption.",
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