Buyers are willing to purchase rescheduled LDC and EM debt because of

Question

Quizplus · Accepted Answer

Buyers are attracted to purchasing rescheduled LDC and EM debt because of the potential for capital gains. When a country reschedules its debt, it may offer improved terms or lower interest rates, making the debt more attractive to buyers. Additionally, if a country's economic conditions and creditworthiness improve over time, the value of its previously discounted debt may increase, providing investors with capital gains.

Buyers Are Willing to Purchase Rescheduled LDC and EM Debt