FRINK Linked Data Fragments server

Matches in SemOpenAlex for { <https://semopenalex.org/work/W317053713> ?p ?o ?g. }

• W317053713 startingPage "56" @default.
• W317053713 abstract "ABSTRACT The purpose of this paper is to develop a model that defines the optimal space for firms located in emerging markets. The 3-D space is determined by the sovereign ceiling, the number of notches above sovereign ceiling achieved on the securitization of the export receivable, and the corresponding cost of securitization vs. the reduction in basis points above Treasury, when piercing sovereign ceiling. We show the case of Pemex Finance, leaving the space due to Mexico's rating upgraded, whilst PVDSA Finance leaving the space because of Venezuela's rating being downgraded. INTRODUCTION A company located in an emerging market country with foreign currency export revenues, can securitize these revenues, and achieve a rating above its sovereign ceiling. The company can raise capital at a lower cost of funding by securitizing its expected export receivables in the currency of a highly rated jurisdiction (hard currency), instead of issuing unsecured debts in i.e. $US or Euros. The rating of the unsecured debt in a hard currency, issued by the firm, is constrained by the sovereign rating. Via securitization the issuer can break through sovereign credit ceilings and gain access to lower cost of capital. Rating agencies assign long and short-term ratings to foreign currency debt issued by sovereign governments. Credit ratings reflect the sovereign's ability and willingness to satisfy the terms of its foreign currency debt. When analyzing emerging market economies, the credit rating assigned to a sovereign's foreign currency debt tends to be the upper boundary for credit ratings given to the foreign currency debt issued by public authorities and private enterprises that are under the sovereign's domain. Insulation from exchange controls and currency restrictions typically requires that the exporter build a funding structure that traps export receivables and the proceeds from their liquidation in a jurisdiction where an offshore special purpose company can grant and defend a security interest in the receivables to investors or to a trustee on behalf of the investors. A firm's local currency ratings will be at least as high as its foreign currency rating because the risk measured by the rating agency is net of the elements which compose sovereign risk. Local currency ratings indicate a firm's ability to service its debt given the quality of its management, operational risk, financial structure and exposure to market forces. Financial structures that have been employed by public entities and private firms to issue foreign currency debt with ratings higher than the rating on foreign currency debt issued by the sovereign vary in financial and legal design but have some fundamental features that are common. At the core of each structure is an offshore special purpose vehicle that takes the place of the original company as creditor to importers/obligors. Importers are directed to pay for goods and services to an offshore account that is the source of debt service for the securities issued to capitalize the company's stream of exports. Direction to pay for imports to the offshore account (notification), requires binding acknowledgment from the importer (see appendix for structure). These transactions are referred to as future-flow securitizations. Future-flow securitizations essentially relocate part of a firm's export business to a jurisdiction that is insulated from the currency convertibility facets of sovereign risk. The principle feature that distinguishes a future securitization from a securitization of receivables is that in the former, receivables are sold before they exist while in the latter all receivables created from designated accounts will be sold over a period as they are created. In a flow securitization the credit performance of the securities depends on the ability of the originator to continue to produce and sell products and services. …" @default.
• W317053713 created "2016-06-24" @default.
• W317053713 creator A5050882633 @default.
• W317053713 creator A5055466977 @default.
• W317053713 date "2006-10-01" @default.
• W317053713 modified "2023-10-11" @default.
• W317053713 title "Defining the 3-D Securitization Space of Future Export Receivables from Emerging Markets" @default.
• W317053713 hasPublicationYear "2006" @default.
• W317053713 type Work @default.
• W317053713 sameAs 317053713 @default.
• W317053713 citedByCount "2" @default.
• W317053713 countsByYear W3170537132013 @default.
• W317053713 crossrefType "journal-article" @default.
• W317053713 hasAuthorship W317053713A5050882633 @default.
• W317053713 hasAuthorship W317053713A5055466977 @default.
• W317053713 hasConcept C10138342 @default.
• W317053713 hasConcept C120527767 @default.
• W317053713 hasConcept C121087249 @default.
• W317053713 hasConcept C141121606 @default.
• W317053713 hasConcept C144133560 @default.
• W317053713 hasConcept C162324750 @default.
• W317053713 hasConcept C178350159 @default.
• W317053713 hasConcept C200870193 @default.
• W317053713 hasConcept C205208723 @default.
• W317053713 hasConcept C2777174672 @default.
• W317053713 hasConcept C2780619108 @default.
• W317053713 hasConcept C30589699 @default.
• W317053713 hasConcept C556758197 @default.
• W317053713 hasConcept C73283319 @default.
• W317053713 hasConcept C90994476 @default.
• W317053713 hasConceptScore W317053713C10138342 @default.
• W317053713 hasConceptScore W317053713C120527767 @default.
• W317053713 hasConceptScore W317053713C121087249 @default.
• W317053713 hasConceptScore W317053713C141121606 @default.
• W317053713 hasConceptScore W317053713C144133560 @default.
• W317053713 hasConceptScore W317053713C162324750 @default.
• W317053713 hasConceptScore W317053713C178350159 @default.
• W317053713 hasConceptScore W317053713C200870193 @default.
• W317053713 hasConceptScore W317053713C205208723 @default.
• W317053713 hasConceptScore W317053713C2777174672 @default.
• W317053713 hasConceptScore W317053713C2780619108 @default.
• W317053713 hasConceptScore W317053713C30589699 @default.
• W317053713 hasConceptScore W317053713C556758197 @default.
• W317053713 hasConceptScore W317053713C73283319 @default.
• W317053713 hasConceptScore W317053713C90994476 @default.
• W317053713 hasIssue "2" @default.
• W317053713 hasLocation W3170537131 @default.
• W317053713 hasOpenAccess W317053713 @default.
• W317053713 hasPrimaryLocation W3170537131 @default.
• W317053713 hasRelatedWork W1502103849 @default.
• W317053713 hasRelatedWork W1555449431 @default.
• W317053713 hasRelatedWork W1989568307 @default.
• W317053713 hasRelatedWork W1998115212 @default.
• W317053713 hasRelatedWork W2020032430 @default.
• W317053713 hasRelatedWork W2083716262 @default.
• W317053713 hasRelatedWork W2104469662 @default.
• W317053713 hasRelatedWork W2154331974 @default.
• W317053713 hasRelatedWork W2374624916 @default.
• W317053713 hasRelatedWork W2390120256 @default.
• W317053713 hasRelatedWork W2460033921 @default.
• W317053713 hasRelatedWork W2485039260 @default.
• W317053713 hasRelatedWork W2585253033 @default.
• W317053713 hasRelatedWork W2973576037 @default.
• W317053713 hasRelatedWork W3123894812 @default.
• W317053713 hasRelatedWork W3123896719 @default.
• W317053713 hasRelatedWork W3124934917 @default.
• W317053713 hasRelatedWork W3125177948 @default.
• W317053713 hasRelatedWork W50205670 @default.
• W317053713 hasRelatedWork W2372434079 @default.
• W317053713 hasVolume "2" @default.
• W317053713 isParatext "false" @default.
• W317053713 isRetracted "false" @default.
• W317053713 magId "317053713" @default.
• W317053713 workType "article" @default.