Repository logo
 

A Short Note on Optimal Debt Management under Asymmetric Information


Type

Working Paper

Change log

Authors

Faraglia, E. 
Marcet, A. 
Oikonomou, R., 
Scott, A. 

Abstract

We show that under asymetric information, if the government holds advanced information relative to the investors.some debt management policies may lead to bond market instability. The In particular, we show that the repurchase/reissuance strategy assumd in most of the current debt management literature would cause such a crisis and it would be therefore highly suboptimal.of a bond below its maturity this does compromise the ability of long bonds to provide fiscal insurance.

Description

Keywords

Is Part Of

Publisher

Faculty of Economics

Publisher DOI

Publisher URL