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DEFERRED OR PARTIAL-PAYMENT ISSUES

Statistics Directorate    
Definition:
Instruments that consist of debt obligations where the investor pays only a portion of the issue price on the initial payment date and the balance several months later.

Context:
The structure allows the borrower to achieve a lower all-in cost compared with straight issues by offering the investor a potential gain from a decline in rates and/or protection against depreciation of the currency between the time of the initial payment and that of the final payment.

The appeal of these securities is a function of the interest rate and currency outlook at any given time.

Source Publication:
Coordinated Portfolio Investment Survey Guide, Second Edition, International Monetary Fund, 2002, Washington DC. Appendix VI: Definition and Description of Instruments.

Hyperlink:
http://www.imf.org/external/pubs/ft/cpis/2002/pdf/cpis_index.pdf

Statistical Theme: Financial statistics

Created on Thursday, August 01, 2002

Last updated on Monday, March 03, 2003