TY - BOOK ID - 84542414 TI - Puttable and Extendible Bonds : Developing Interest Rate Derivatives for Emerging Markets AU - Neftci, Salih. AU - Santos, Andre. PY - 2003 SN - 1462384986 1452719772 1282413783 145191895X 9786613820815 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Interest rates. KW - Interest rate futures KW - Bonds KW - Derivative securities. KW - Derivative financial instruments KW - Derivative financial products KW - Derivative instruments KW - Derivatives (Finance) KW - Financial derivatives KW - Securities KW - Structured notes (Securities) KW - Bond issues KW - Debentures KW - Negotiable instruments KW - Debts, Public KW - Stocks KW - Futures, Interest rate KW - Financial futures KW - Money market rates KW - Rate of interest KW - Rates, Interest KW - Interest KW - Econometric models. KW - Macroeconomics KW - Economics: General KW - International Economics KW - Investments: Bonds KW - Investments: Options KW - Banks and Banking KW - Foreign Exchange KW - Informal Economy KW - Underground Econom KW - Contingent Pricing KW - Futures Pricing KW - option pricing KW - International Financial Markets KW - General Financial Markets: General (includes Measurement and Data) KW - Pension Funds KW - Non-bank Financial Institutions KW - Financial Instruments KW - Institutional Investors KW - Price Level KW - Inflation KW - Deflation KW - Interest Rates: Determination, Term Structure, and Effects KW - Economic & financial crises & disasters KW - Economics of specific sectors KW - Investment & securities KW - Finance KW - Financial crises KW - Economic sectors KW - Financial institutions KW - Options KW - Asset prices KW - Prices KW - Sovereign bonds KW - Short term interest rates KW - Financial services KW - Currency crises KW - Informal sector KW - Economics KW - Derivative securities KW - Interest rates KW - Brazil UR - https://www.unicat.be/uniCat?func=search&query=sysid:84542414 AB - This paper analyzes the price stabilizing properties of puttable and extendible bonds, their potential to help develop interest-rate derivative markets, and their use by governments. Their stabilizing properties imply that, when bond prices fall, prices for puttable and extendible bonds fall by less. Their embedded options work as a cushion and replicate the trading gains from hedging long-term bonds with interest rate derivatives. These bonds can help develop interest-rate derivative markets in developing countries and eventually increase demand for long-term government bonds. Informal evidence from OECD countries suggests that these bonds were useful in the 1980s, when interest rates were volatile. ER -