The thesis describes and analyses, within a framework of qualitative
market development theory, the development of the Secondary Market in
the bank debts of less developed countries. A survey of market
participants is presented and analysed. The theory of financial market
efficiency is assessed, and secondary market price data is used to test
the theory in the secondary market context.
Market-based debt reduction is described in theory and in practice, with
a qualitative and quantitative assessment of the Brady Initiative.
Simulations and sensitivity analysis of the likely effect on debt
servicing ability for the first three beneficiaries of Brady debt
restructuring are presented. Suggestions for further research are
presented in the concluding chapter.
A Doctoral Thesis. Submitted in partial fulfilment of the requirements for the award of Doctor of Philosophy of Loughborough University.