Valuation methods for specific debt instruments in public sector debt statistics

Описание: This video outlines the valuation of specific types of debt instruments according to the following groupings: Nontraded debt instruments; Traded debt securities; and Insurance, pension, and standardized guarantee schemes.

If the market price for a traded debt security is not readily observable, the present value of the expected stream future payments associated with the security can be used to estimate market value by using a market rate of interest. For unlisted debt securities, the price reported for accounting or regulatory purposes might be used, although this method is less preferable than those mentioned previously. Similarly, for deep-discount or zero-coupon bonds, the issue price plus amortization of the discount could be used in the absence of a market price. When securities are quoted on markets with a buy-sell spread, we use the midpoint to value the instrument.

The difference between market value, nominal value, and face value used in macroeconomic statistics is explained here:
   • What is the difference between market, nom...  

Link to the IMF online course on public sector debt statistics for government officials: https://www.imf.org/en/Capacity-Devel...

Link to the IMF online course on public sector debt statistics for members of the general public: https://www.edx.org/course/public-sec...