June 1997

Borrowers: Borrowers start to play a strategic game


The job of borrowers today is to do much more than merely borrow. As well as raising new debt, they must think strategically: taking care of whole portfolios of existing liabilities; managing these liabilities against assets; managing duration and currency gaps between assets and liabilities to beat their benchmarks. Only then can they plan their moves in secondary markets or through new issues. It's a complicated and demanding game.


Many borrowers are also asset managers, investing short-term liquidity. And the heads of borrowing for supranational and financial institutions now often involve themselves even...


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