Bester, Helmut, 1985, “Screening vs. Rationing in Credit Markets with Imperfect Information,” American Economic Review, Vol. 75 (September), pp. 850–55.
Buendia, R., 1999, “Lessons From the Past Apply to Future Securitizations in Emerging Markets,” Standard and Poors Ratings Direct Research, July 20. Available via the Internet: http://www.standardandpoors.com.
Davis, Jeffrey, and others, 2001, “Stabilization and Savings Funds for Nonrenewable Resources: Experience and Fiscal Policy Implications,” IMF Occasional Paper No. 205 (Washington: International Monetary Fund).
Davis, Nick, 2000, “Securitization: A Public Policy Tool?” New Zealand Treasury Working Paper 00/8 (Wellington: New Zealand Treasury). Available via the Internet: http://www.treasury.govt.nz/workingpapers/2000/00-8.asp.
Hill, Claire A., 1997, “Securitization: A Low-Cost Sweetner for Lemons,” Journal of Applied Corporate Finance, Volume 10 (Spring).
Johnson, Mark B., AsiaMoney, 2000, “Securitization in Asia: A Market of Growth and Innovation,” supplement to Vol. 11 (April), pp. 1–28.
Kabance, G., 2001, “Under Pressure: Structured Transactions in Emerging Market Stress—Update 2001,” Fitch IBCA, Duff and Phelps, Global Securitization Quarterly, July 2001.
Kearns, P., S. Albers, and A. Mackay, 2000, “Rating Securities Backed by Financial Future Cashflows,” Fitch IBCA, Duff and Phelps.
Ketkar, Suhas, and Dilip Ratha, 2001, “Development Financing During A Crisis: Securitization of Future Receivables,” World Bank Policy Research Working Paper No. 2582 (Washington: World Bank).
Modigliani, Franco, and Merton H. Miller, 1958, “The Cost of Capital: Corporation Finance and the Theory of Investment,” American Economic Review, Vol. 48 (June), pp. 261-97.
Stiglitz, Joseph E., and Andrew Weiss, 1981, “Credit Rationing in Markets with Imperfect Information,” American Economic Review, Vol. 71 (June), pp. 393–410.
Stiglitz, Joseph E., and Andrew Weiss, 1986, “Credit Rationing and Collateral,” in Recent Developments in Corporate Finance, ed. by Jeremy S. S. Edwards, and others (Cambridge: Cambridge University Press).
Thanks are due to James Daniel, Joshua Felman, and Richard Hemming for helpful comments.
For the purposes of this paper, the central government, a state-owned corporation, a local authority, or some other public sector entity.
Depending on the structure of the deal, the originator in some cases may retain a measure of ongoing liability (e.g., to repurchase the receivables from the SPV in certain specified circumstances).
The minimum reserve included in such financing structures is usually three months, debt service (but it can also be much larger).
In assessing the interest rate cost advantages to the public sector entity from securitized arrangements, one needs therefore to take into account the premium paid to the insurer; this is a comparison that is not often made and is difficult to calculate, since the costs of the guarantee are often not disclosed.
See, for example, the recent attempts for the Argentine federal government to restructure the country’s provincial debt.
See Ketkar and Ratha (2001) for a comprehensive description of the demographics of past future flow securitizations.
There is more activity on the private sector securitization of future receivables in Asia such as mortgage backed securities, securitizing bank card receivables, and others. See AsiaMoney (2000).
Pemex currently has shown proven reserves of 45 billion barrels of oil or 29 years of production at current levels.
Non-Pemex participation is, however, permitted in petrochemicals and gasoline marketing.
For a discussion of the historical properties of yields on Pemex debt relative to that of Mexican sovereign debt, see Ketkar and Ratha (2001).
Approximately 80 percent of such sales were to designated customers that had credit ratings of A or higher.
Close to 100 percent of Tucumán’s revenues have been pledged as collateral to creditors of one form or another.
Royalties are determined as 12 percent of the production valued at the well head price for both oil and gas.