Supranational organizations sources of repayment proceeds...a bit confused
Not sure I understand this line in the book in the fixed income section (reading 51). Under sources of repayment proceeds it states that one source of repayment for bonds issued by supernational organizations is the repayment of previous bonds issued by the organization.
How exactly does paying off other loans service the debt of other bonds? If these organizations pay off previous loans doesn’t this decrease their sources of proceeds? Or are you supposed to look at it from the perspective of being bumped up in the pecking order since there are less bonds senior to the others?
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