Bond Markets, Treasury and Debt Management

Bond Markets, Treasury and Debt Management : The Italian Case

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Description

Until not too many years ago, the Italian government bond market, though the third largest in the world in terms of size, was characterised by numerous inefficiencies and problems regarding both policy in managing the public debt and the operation of the market. These aspects tended to isolate the Italian market from the international fmancial community and to keep large, international investors away from our market. As the situation with Italy's public finances grew worse and with financial markets being deregulated and expanding internationally, several direct measures were taken in recent years to encourage an even greater recourse to the Italian government securities market and to improve it's efficiency. Innovations in techniques for issuing government bonds, the creation of an automated trading system for Italian state securities, and the launch of a futures market in Italy, too, have all been useful measures in getting the Italian market closer to international standards. The measures adopted by economic policy authorities have often been inspired by the works developed by various study groups instituted by the treasury Ministry as well as by research coming from the academic world. Likewise, many measures aimed at improving the government bond market have been realised thanks to the important contribution of the trade associations and the main financial intermediaries operating in Italy, whose studies, suggestions and proposals have been based on operating expertise built up over decades.show more

Product details

  • Hardback | 246 pages
  • 162.56 x 236.22 x 22.86mm | 521.63g
  • Chapman and Hall
  • London, United Kingdom
  • English
  • 1994 ed.
  • biography
  • 0412597403
  • 9780412597404

Back cover copy

During the 1980s, the stock of the Italian public debt rose to over 100% of the GDP. The Italian authorities took steps against this and although they did not prevent the growth in the deficit they were successful in its management. The result is that the Italian experience is an extremely interesting case study for financial research in debt management and microstructure. The rationale of this book is the description and analysis of this case and its implications for other developed countries. It is divided into two parts. In the first part the analysis is focused on macroeconomic issues concerning the risk premia on Italian Treasury securities. In the second part attention is devoted to a set of microeconomic issues concerning the function of the market. Throughout the book the emphasis is on authoritative explanations by insiders on how policy really works so that Bond Markets, Treasury and Debt Management, while being an important contribution to academic theories in the areas concerned, is also of practical use to specialists and policy-makers in government, and professionals in the financial world.show more

Table of contents

Introduction. Understanding the high interest rates on Italian government securities. The determinants of yield differentials in favour of the lira: a quantitative analysis. Portfolio choices and real interest rates: the role of savers' age structure. Fiscal rules for debt sustainability: history and institutions. The auction mechanism for the settlement of medium and long-term securities of the Italian Treasury. The valuation of Italian floating-rate Treasuries. Informational efficiency and liquidity on the T-bond market. The integration of European futures markets on long-term government securities. Institutional investors and financial markets: evidence from an international comparison.show more