The Public Debt Management Newtwork

In order to measure the performance of public debt management activities, benchmarks need to be specified. This requires that the government specifies its risk tolerance and other portfolio preferences concerning the trade-off between expected cost and risk. This in turn means that debt managers need to articulate a view on the optimal structure of their public debt portfolio in accordance with their primary objectives. Debt managers operating in emerging markets are generally facing greater challenges than their counter-parts from advanced markets. The structure or composition of the outstanding debt in emerging markets is in most cases much more complex, while volatility in the macro-environment is usually much higher than in advanced markets. In an increasing number of countries, public debt management performance is evaluated against these benchmarks.

In this policy area the following issues are addressed:

• the objectives of performance measurement;
• the performance measurement framework or performance indicators to use;
• the role of both quantitative and qualitative evaluation of debt managers' performance;
• the different formats in use for performance evaluation;
• the use of a benchmark portfolio, representing the desired long-term structure or composition of the government debt portfolio, as a quantitative framework for assessing the management of the debt portfolio;
• the role of peer comparison in performance measurement

Sample Documents

The following are sample documents published up to and including the year 2003, and extracted from a wider group available on the reserved area of this website. Access to the reserved area is free, but reserved for partners only. Please find more information at the Join us section.

Documents

• Sullivan Paul

  The Design and Use of Strategic Benchmarks in Managing Risk (1999)

  More Info on The Design and Use of Strategi[..] - The Design and Use of Strategic Benchmarks in Managing RiskDownload PDF 194.34 KB