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Although considered as opaque and mysterious, nowadays the illiquid assets represent an investment opportunity increasingly talked about by the various different institutional investors. Indeed, it turns out that all of the assets, either financial or real, are somewhat illiquid, but what varies is their degree of illiquidity, portrayed as their liquid event occurrences. This degree of illiquidity results in a premium for the investors, making up for the higher risks taken while investing in such particular assets. Besides this concept of illiquidity and the appealing related premium, these assets are also extremely attractive because they provide, among other, higher risk-adjusted returns than the traditional assets, a reduction of the systematic-risk of a portfolio through diversification and a key noncyclical characteristic.
Naturally, investing in these assets represents a massive risk and a challenge considering the fact that there is massive lack of information and the market is decentralized, without any public quotations. Therefore, the investors, mostly institutional, are active and constantly developing their knowledge of the field to take advantage of the few available information.
In this context, Pure Capital S.A., an independent asset manager established in Luxembourg, desires to develop its activities and to take advantage of the illiquid assets through the development of its Management Company service. 
Therefore, through this project, Pure Capital S.A. will be provided with a genuine toolbox. The latter is composed of a literature and theoretical background concerning the illiquid assets, making up for the frame of the actual tools. These are, more particularly, on one hand, the Decision Tree, derived into identity sheets for each of the studied illiquid assets, gathering the major useful features for the determination of the specific illiquid asset sub-category. On the other hand, the Valuation Matrix gives, within seconds, the corresponding and recommended valuation approaches to conduct, for each of the illiquid asset sub-categories which are at stake for Pure Capital S.A. in this project. 
The different implemented valuation methodologies are aimed to be generical and user-friendly, to encompass as many cases as possible and enabling Pure Capital S.A. to perform effortless counter valuations. They are developed qualitatively and some, quantitatively.

Alternative investments --- Illiquidity --- Private Equity --- Private Debt --- Real Estate --- Infrastructure --- Corporate Finance --- Valuation --- Income Approach --- Market Approach --- Cost Approach. --- Sciences économiques & de gestion > Finance

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Emerging market and developing economies have experienced recurrent episodes of rapid debt accumulation over the past fifty years. This paper examines the consequences of debt accumulation using a three-pronged approach: an event study of debt accumulation episodes in 100 emerging market and developing economies since 1970; a series of econometric models examining the linkages between debt and the probability of financial crises; and a set of case studies of rapid debt buildup that ended in crises. The paper reports four main results. First, episodes of debt accumulation are common, with more than 500 episodes occurring since 1970. Second, around half of these episodes were associated with financial crises which typically had worse economic outcomes than those without crises - after 8 years output per capita was typically 6-10 percent lower and investment 15-22 percent weaker in crisis episodes. Third, a rapid buildup of debt, whether public or private, increased the likelihood of a financial crisis, as did a larger share of short-term external debt, higher debt service cover, and lower reserves cover. Fourth, countries that experienced financial crises frequently employed combinations of unsustainable fiscal, monetary and financial sector policies, and often suffered from structural and institutional weaknesses.

Banking Crisis --- Bankruptcy and Resolution of Financial Distress --- Currency Crisis --- Debt Accumulation --- Debt Crisis --- Debt Markets --- Debt Sustainability --- External Debt --- Finance and Financial Sector Development --- Financial Crisis --- Financial Crisis Management and Restructuring --- Fiscal Policy --- Fiscal Sustainability --- International Economics and Trade --- Macroeconomic Management --- Macroeconomics and Economic Growth --- Monetary Policy --- Private Debt --- Public Debt

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Episodes of debt accumulation have been a recurrent feature of the global economy over the past fifty years. Since 2010, emerging and developing economies have experienced another wave of historically large and rapid debt accumulation. Similar past debt buildups have often ended in widespread financial crises in these economies. This paper examines the factors that are likely to determine the outcome of the most recent debt wave, and considers policy options to help reduce the likelihood that it ends again in widespread crises. It reports two main results. First, the rapid increase in debt has made emerging and developing economies more vulnerable to shifts in market sentiment, notwithstanding historically low global interest rates. Second, policy options are available to lower the likelihood of financial crises, and to help manage the adverse impacts of crises when they do occur. These include sound debt management, strong monetary and fiscal frameworks, and robust bank supervision and regulation. The post-crisis debt buildup has coincided with a period of subdued growth as well as the emergence of non-traditional creditors. As a result, policy priorities also need to ensure that debt is spent on productive purposes to improve growth prospects and that all debt-related transactions are transparently reported.

Currency Crisis --- Debt Crisis --- Debt Markets --- Debt Sustainability --- Debt Wave --- Economic Adjustment and Lending --- Economic Policy, Institutions and Governance --- Emerging Market Economies --- External Debt --- Finance and Financial Sector Development --- Financial Crisis --- Fiscal and Monetary Policy --- Fiscal Policy --- International Economics and Trade --- Monetary Policy --- Private Debt --- Public Debt --- Public Financial Management --- Public Sector Development

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This paper presents a framework for evaluating the relative contributions of different creditors in cases where only partial payments can be made by the debtor country. A methodology is developed to calculate partial payments—or alternatively put—determine residual financing. By focusing on the relative seniority of creditors and expectations of the debtor’s ability to repay, alternative sharing rules are quantified. The measure is based on the expected present value of payments. Creditors earning a below-market rate of return suffer a burden; creditors earning the same rate of return are said to share the burden equally.

Bonds --- Capital and Ownership Structure --- Currencies --- Debt Management --- Debt reduction --- Debt service --- Debt --- Debts, External --- Exports and Imports --- Finance --- Financial Risk and Risk Management --- Financial Risk Management --- Financing Policy --- General Financial Markets: General (includes Measurement and Data) --- Goodwill --- Government and the Monetary System --- Interest payments --- International economics --- International Lending and Debt Problems --- Investment & securities --- Investments: Bonds --- Macroeconomics --- Monetary economics --- Monetary Systems --- Money and Monetary Policy --- Money --- Payment Systems --- Private debt --- Regimes --- Sovereign Debt --- Standards --- Value of Firms

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The paper analyzes the choice between public and private debt by an entrenched manager. The model shows that when the firm’s credit risk is low, management issues public bonds because of the value gains from increased flexibility rather than reduced restrictions and monitoring. In fact, management’s expected private gains decrease as initial private debt restrictions are selectively relaxed. In contrast, when credit risk is high, management issues private debt because of the value gains and private benefits from renegotiating more stringent restrictions. When the maturity of private debt is shortened, however, privately and publicly placed bonds can be preferred to bank debt.

Banks and Banking --- Exports and Imports --- Financial Risk Management --- Macroeconomics --- Public Finance --- Financing Policy --- Financial Risk and Risk Management --- Capital and Ownership Structure --- Value of Firms --- Goodwill --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Pension Funds --- Non-bank Financial Institutions --- Financial Instruments --- Institutional Investors --- Debt --- Debt Management --- Sovereign Debt --- International Lending and Debt Problems --- Public finance & taxation --- Financial services law & regulation --- International economics --- Finance --- Private debt --- Public debt --- Credit risk --- Debt financing --- Debt renegotiation --- Debts, Public --- Debts, External --- Financial risk management