A Primer on Managing Sovereign Debt-Portfolio Risks
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Summary:
This paper provides an overview of sovereign debt portfolio risks and discusses various liability management operations (LMOs) and instruments used by public debt managers to mitigate these risks. Debt management strategies analyzed in the context of helping reach debt portfolio targets and attain desired portfolio structures. Also, the paper outlines how LMOs could be integrated into a debt management strategy and serve as policy tools to reduce potential debt portfolio vulnerabilities. Further, the paper presents operational issues faced by debt managers, including the need to develop a risk management framework, interactions of debt management with fiscal policy, monetary policy, and financial stability, as well as efficient government bond markets.
Series:
Working Paper No. 2018/074
Subject:
Asset and liability management Bonds Credit risk Debt management Financial institutions Financial regulation and supervision Government debt management Public debt Public financial management (PFM)
English
Publication Date:
April 6, 2018
ISBN/ISSN:
9781484350546/1018-5941
Stock No:
WPIEA2018074
Pages:
133
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