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US real interest rates and default risk in emerging economies
Foley-Fisher, Nathan; Guimarães, Bernardo - 2009
We empirically analyse the appropriateness of indexing emerging market sovereign debt to US real interest rates. We find that policy-induced exogenous increases in US rates raise default risk in emerging market economies, as hypothesised in the theoretical literature. However, we also find...
Persistent link: https://www.econbiz.de/10003894416
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Pre-emptive sovereign debt restructuring and holdout litigation
Anand, Kartik; Gai, Prasanna - 2018
We offer an analytical framework for studying "pre-emptive" debt exchanges. Countries can tailor a sovereign bankruptcy framework by choosing provisions (or "haircuts") ex ante, but must contend with the market discipline of holdout litigation ex post. Secondary markets play a role in shaping...
Persistent link: https://www.econbiz.de/10011874276
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Selective default expectations
Accominotti, Olivier; Albers, Thilo N. H.; Oosterlinck, Kim - 2023
This paper explores how selective default expectations affect the pricing of sovereign bonds in a historical laboratory: the German default of the 1930s. We analyze yield differentials between identical government bonds traded across various creditor countries before and after bond market...
Persistent link: https://www.econbiz.de/10014495920
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Natural resources, demand for external finance and financial development
Hattendorff, Christian - 2014
The paper contributes to the ongoing debate on the natural resource curse, which postulates a negative link between natural resource abundance and economic growth. It shows empirically that resource-rich countries appear to have a less developed financial system and investigates a potential...
Persistent link: https://www.econbiz.de/10010433905
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Growth in spasmodia : foreign baorrowing and crises
Fabella, Raul V. - 1984
Persistent link: https://www.econbiz.de/10003529083
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Sovereign risk and bank fragility
Anand, Kartik; Mankart, Jochen - 2020
We develop a model of bank risk-taking with strategic sovereign default risk. Domestic banks invest in real projects and purchase government bonds. While an increase in bond purchases crowds out profitable investments, it improves the government's incentives to repay and therefore lowers its...
Persistent link: https://www.econbiz.de/10012301195
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Catharsis - the real effects of bank insolvency and resolution
Korte, Josef - 2013
In general, banks play a growth-enhancing role for the real economy. However, distorted incentives for banks, depositors, and regulators in connection with bank insolvency may corrupt banks' credit allocation and monitoring decisions, leading to suboptimal real economic outcomes. A rules-based...
Persistent link: https://www.econbiz.de/10009751064
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Understanding global liquidity
Eickmeier, Sandra; Gambacorta, Leonardo; Hofmann, Boris - 2013
We explore the concept of global liquidity based on a factor model estimated using a large set of financial and … macroeconomic variables from 24 advanced and emerging market economies. We measure global liquidity conditions based on the common … global factors in the dynamics of liquidity indicators. By imposing theoretically motivated sign restrictions on factor …
Persistent link: https://www.econbiz.de/10009720899
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Global liquidity, offshore bond issuance and shadow banking in China
Yamamoto, Shugo - 2020 - This version: March 1, 2020
Persistent link: https://www.econbiz.de/10012655854
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Global liquidity and exchange market pressure in emerging market economies
Hossfeld, Oliver; Pramor, Marcus - 2018
We analyse the relationship between global liquidity and exchange market pressure in 32 emerging market economies … accounts for changes in exchange rates, foreign exchange reserves and, optionally, interest rates. Surges in monetary liquidity … market conditions: ample liquidity provision in advanced economies contributes to the build-up of financial stability risks …
Persistent link: https://www.econbiz.de/10011820941