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  1. Join Date
    Dec 2009
    Posts
    607
    #31
    Quote Originally Posted by uls View Post
    di naman kailangan mabayaran ng buo ang utang

    what matters is the Phils. can keep rolling over its debt

    huwag lang mawalan ng confidence ang mga creditors sa Pinas

    as long as they keep buying our debt, as long as borrowing cost remains stable, the party continues
    One day in the future, the Party would end.

  2. Join Date
    Oct 2006
    Posts
    5,994
    #32
    ^when we reach the point of sovereign default
    Damn, son! Where'd you find this?

  3. Join Date
    Feb 2008
    Posts
    14,181
    #33
    As I mentioned walang problema ang Peso bonds, printable yan... Hindi mag default yan...

    Yung problema yung USD bonds or sovereigns or ROP's as they call it... Kailangan ng gobyerno ng USD and the OFW's are there to hep them in this regard.

  4. Join Date
    Oct 2002
    Posts
    40,038
    #34
    itong peso bond tama ba rinig ko na sa maturity it will be paid offshore and in dollars?

  5. Join Date
    Nov 2005
    Posts
    45,927
    #35
    One day in the future, the Party would end.
    problema na ng future generations yan

    --

    when we reach the point of sovereign default
    there will be signs naman way before the party ends

    if govt debt as % or GDP keeps rising, the bond market will start to lose confidence, RP bond prices will fall, rates will rise

    creditors will demand higher rates on new debt

    credit default protection cost will rise

    credit ratings downgrade

    peso depreciation

    things like that

    but for now, peso is strong, credit rating stable, borrowing cost stable

    party on dudes


  6. Join Date
    Nov 2005
    Posts
    45,927
    #36
    Quote Originally Posted by shadow View Post
    itong peso bond tama ba rinig ko na sa maturity it will be paid offshore and in dollars?
    yes

    the govt will pay in peso

    walang currency risk ang govt

    peso convert to dollars

    so the bondholders bear currency risk

    pag bumagsak ang peso, the bondholders get less dollars

    unlike pag nag issue ng USD denominated bonds ang Pinas, the govt bears currency risk

  7. Join Date
    Nov 2005
    Posts
    45,927
    #37
    so the bondholders better pray the peso remains strong 10 years from now hehe

    they're betting OFWs will keep sending dollars to the Phils for many many more years

    that will keep the peso strong

  8. Join Date
    Nov 2005
    Posts
    45,927
    #38
    me:
    if govt debt as % or GDP keeps rising, the bond market will start to lose confidence
    correction:

    if govt debt as percentage of GDP keeps rising...

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