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Eaton, Jonathan - 1995

We review the literature on sovereign debt. We organize our survey around three central questions: (1) Why do sovereign debtors ever repay their debts? (2) What burdens, in the form of distortions and inefficiencies, does sovereign debt impose? and (3) How might debt be restructured to reduce...

Persistent link: https://www.econbiz.de/10012473755

Take the Short Route : How to Repay and Restructure Sovereign Debt with Multiple Maturities

Aguiar, Mark - 2013

We address the question of whether and how a sovereign should reduce its external indebtedness when default is a …

Persistent link: https://www.econbiz.de/10012458946

Take the Short Route : Equilibrium Default and Debt Maturity

Aguiar, Mark - 2016

We study the interactions between sovereign debt default and maturity choice in a setting with limited commitment for … long as default is not preferable, remain passive in long-term bond markets, making payments and retiring long-term bonds … losses, as bond prices move against the sovereign. Our results hold regardless of the shape of the yield curve. The yield …

Persistent link: https://www.econbiz.de/10012455833

Debt Restructuring

Friedman, Benjamin M. - 2000

What difference does it make, and for whom, whether the nonperforming debts of emerging market borrowers are restructured? This paper begins by positing a set of counterfactual conditions under which restructuring would not matter, and then shows how several ways in which the actual world of...

Persistent link: https://www.econbiz.de/10012471039

Sovereign Debt Restructurings : Panacea or Pangloss?

Bulow, Jeremy I. - 1988

The most widely proposed LDC debt plans are flawed by their failure to recognize the fundamental differences between corporate and sovereign debt. Consequently, many plans intended to help highly-indebted countries mainly aid their foreign creditors. This paper emphasizes the crucial distinction...

Persistent link: https://www.econbiz.de/10012476435

Endogenous Creditor Seniority and External Debt Values

Dooley, Michael - 1992

A new aggregation scheme used to measure the sources of fiscal financing of indebted countries suggests that there was a fundamental improvement in the seniority of domestic debt at the expense of foreign bank debt during the late 1980s. We argue that this was the revenue maximizing response of...

Persistent link: https://www.econbiz.de/10012474796

The Long and the Short of It : Sovereign Debt Crises and Debt Maturity

Fernández, Raquel - 2014

We present a simple model of sovereign debt crises in which a country chooses its optimal mix of short and long-term bonds subject to standard contracting frictions: the country cannot commit to repay its debts nor to a specific path of future debt issues, and contracts cannot be made state...

Persistent link: https://www.econbiz.de/10012457880

Would Collective Action Clauses Raise Borrowing Costs?

Eichengreen, Barry - 2000

restructuring are offset by the moral hazard and default risk associated with the presence of renegotiation-friendly loan provisions …

Persistent link: https://www.econbiz.de/10012471318

Debauchery and Original Sin : The Currency Composition of Sovereign Debt

Engel, Charles - 2018

limited enforcement frictions arising from a government's monetary and debt policy: strategic currency debasement and default …

Persistent link: https://www.econbiz.de/10012453049

Sovereign Bond Restructuring : Commitment vs. Flexibility

Donaldson, Jason Roderick; Kremens, Lukas; Piacentino, … - National Bureau of Economic Research - 2022

Sovereigns in distress often engage in debt restructuring, typically negotiating with multiple classes of bondholders at once. We use natural experiments to investigate whether sovereign bondholders benefit from committing not to restructure. We find that committing not to restructure one class...

Persistent link: https://www.econbiz.de/10013172171

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