On a credit rating-adjusted basis, spreads on U.S. high-yield debt have typically been regarded as a lower bound for … emerging market debt. However in the C-rated and defaulted segment, emerging market debt has traded at lower spreads than … similarly rated U.S. high yield debt. We show that the lower spreads reflect the fact that the total returns from defaulted debt …

be counted as debt. Ignored in practice, this statutory requirement makes no economic sense, but remains a trap awaiting … absurd results, it may also create perverse incentives to choose higher-yield debt over lower-yield debt …

lenders usually negotiate over the share of the defaulted debt to be repaid. This paper incorporates CDS contracts into a … sovereign default model and demonstrates that the existence of a CDS market results in lower default probability, higher debt … renegotiations, the lender needs to be compensated for lower expected insurance payments. This leads to higher debt repayment in …

the presence of debt issues with different seniority form the same issuer …

In late 2008, Ecuador launched a successful effort to restructure its external debt, the circumstances of which are … unique in the recent history of sovereign debt restructurings. The country had a rocky history of debt repayment, but after … restructurings in 1995 and 2000, it had arguably sustainable levels of external debt. In 2006, Rafael Correa, running for president …