Sovereign governments owe debt to many foreign creditors and can choose which creditors to favor when making payments … bonds. Private creditors are typically paid first and lose less than bilateral official creditors. We confirm that … multilateral institutions such as the IMF and World Bank are senior creditors …

Infrequent but turbulent overt sovereign defaults on domestic creditors are a "forgotten history" in Macroeconomics. We … creditors by balancing distributional incentives v. the social value of debt for self-insurance, liquidity, and risk-sharing. A …

swaps (CDS). We show that CDS, and the empty creditors they give rise to, have important ex-ante commitment benefits: By … strengthening creditors' bargaining power they raise the debtor's pledgeable income and help reduce the incidence of strategic …

There are situations in which dispersed creditors (e.g., public creditors) have more difficulties and higher costs when … collecting their claims in financial distress than concentrated creditors (e.g., banks). Under this assumption, our model … predicts that measures of debt concentration relate [a] positively to creditors' chosen aggregate debt collection expenditures …

more impatient than foreign creditors, and (ii) there are deadweight losses from default; both are realistic and standard … creditors will price bonds; long maturity bonds are therefore a crucial component of the multiplicity. We introduce a third …

sample covers 327 sovereign debt restructurings with external private creditors over 205 default spells since 1815. Creditor …" applicable to future defaults. Poorer countries, first-time debt issuers, and those that borrowed heavily from external creditors …