Similar Search Results

Martinez, Leonardo; Roch, Francisco; Roldán, Francisco; … - 2022

This paper surveys the literature on sovereign debt from the perspective of understanding how sovereign debt differs from privately issue debt, and why sovereign debt is deemed safe in some countries but risky in others. The answers relate to the unique power of the sovereign. One the one hand,...

Persistent link: https://www.econbiz.de/10014081238

Sovereign Debt Repatriation During Crises

Arslanalp, Serkan; Sunder-Plassmann, Laura - 2022

We use a new, comprehensive data set on the sovereign debt investor base to document three novel empirical facts: (i) sovereign debt is repatriated - that is, shifted from external private to domestic investors - prior to sovereign defaults; (ii) not all crises are equal: evidence for...

Persistent link: https://www.econbiz.de/10013288911

An Apocalypse Foretold : Climate Shocks and Sovereign Defaults

Cevik, Serhan; Jalles, João Tovar - 2021

Climate change poses an existential threat to the global economy. While there is a growing body of literature on the economic consequences of climate change, research on the link between climate change and sovereign default risk is nonexistent. We aim to fill this gap in the literature by...

Persistent link: https://www.econbiz.de/10013252051

Constrained Efficient Borrowing with Sovereign Default Risk

Hatchondo, Juan Carlos; Martinez, Leonardo; Roch, Francisco - 2021

Using a quantitative sovereign default model, we characterize constrained efficient borrowing by a Ramsey government that commits to income-history-contingent borrowing paths taking as given ex-post optimal future default decisions. The Ramsey government improves upon the Markov government...

Persistent link: https://www.econbiz.de/10013252206

Sovereign Cocos

Hatchondo, Juan; Martinez, Leonardo; Önder, Yasin Kürşat - 2022

) that stipulate a suspension of debt payments when the government faces liquidity shocks in the form of an increase of the … bondholders' risk aversion. We find that in spite of reducing the frequency of defaults triggered by liquidity shocks, introducing … cocos increases the overall default frequency. By mitigating concerns about liquidity, cocos make indebtedness and default …

Persistent link: https://www.econbiz.de/10013289445

Uncertainty Premia, Sovereign Default Risk, and State-Contingent Debt

Roch, Francisco; Roldán, Francisco - 2022

We analyze how concerns for model misspecification on the part of international lenders affect the desirability of issuing state-contingent debt instruments in a standard sovereign default model à la Eaton and Gersovitz (1981). We show that for the commonly used threshold state-contingent bond...

Persistent link: https://www.econbiz.de/10014030625

Debt Seniority and Sovereign Debt Crises

Ari, Anil - 2018

Is the seniority structure of sovereign debt neutral for a government's decision betweendefaulting and raising surpluses? In this paper, we address this question using a model ofdebt crises where a discretionary government endogenously chooses distortionary taxationand whether to apply an...

Persistent link: https://www.econbiz.de/10012913932

Bankruptcy Procedures for Sovereigns : A History of Ideas, 1976-2001

Rogoff, Kenneth; Zettelmeyer, Jeromin - 2021

This paper describes the evolution of ideas to apply bankruptcy reorganization principles to sovereign debt crises. Our focus is on policy proposals between the late 1970s and Anne Krueger`s (2001) proposed Sovereign Debt-Restructuring Mechanism, with brief reference to the economics literature...

Persistent link: https://www.econbiz.de/10013317866

The Dynamics of Sovereign Debt Crises and Bailouts

Roch, Francisco - 2016

Motivated by the recent European debt crisis, this paper investigates the scope for a bailout guarantee in a sovereign …

Persistent link: https://www.econbiz.de/10012977831

Sovereign Debt Markets in Turbulent Times : Creditor Discrimination and Crowding-Out

Broner, Fernando - 2014

other countries in the Eurozone, and how they may be addressed by policies at the European level …

Persistent link: https://www.econbiz.de/10013059093

1
2
3
4
5
6
7
8
9
10
Next
Last