Claessens, Stijn; Pennacchi, George - In: Journal of Financial and Quantitative Analysis 31 (1996) 01, pp. 109-126
differently from the unadjusted bond prices. We demonstrate that other Mexican bonds can be priced fairly accurately on the basis …Market prices of developing country debt reflect investors' views of country repayment capacity as well as other debt …-specific factors. To extract a measure of repayment capacity from debt prices, adjustments need to be made to account for: debt values …