Оценка экономической эффективности линкеров: обзор методологии
Importance Nowadays institutions responsible for the debt management operate in the situation of high vulnerability. Attracting resources using new debt instruments, such as index-linked bonds, is one of the possible solutions.
Topic Evaluation of economic efficiency of inflation-linked bonds.
Aim The aim is to discuss the methodology developed by the UK Debt Management Office that assesses effectiveness of index-linked bonds’ issuance.
Objectives To study the peculiarities of index-linked bonds’ evaluation and their distribution. To examine the methodology, its conditions, benefits and limitations. To assess the possibility and feasibility of the model’s application for structured assessment of the bonds’ issuance efficiency.
Methodology The method is based on the concept of break-even inflation rate, which is taken as an indexation tool for an artificial bond. The difference in cash flows from the newly created bond and a “linker” is an indicator of efficiency.
Results The analysis allows researchers to evaluate the efficiency of the index-linked bond issuance, to choose the best maturity and the volume of issuance, considering different inflation forecasts.
Relevance This analysis allows both federal and municipal authorities to evaluate the efficiency of index-linked bonds, which is necessary for the fundamentally and technically advocated decision-making in regards of debt financing.
Conclusion The model is a useful tool for the index-linked bonds efficiency evaluation. Nevertheless, it is vital to apply it in the system with other methods. The model has some limitations and demands good-quality forecasts. This methodology is possible to implement, and highly-demanded in the current state of affairs.