This paper examines the causes, process, and outcome of Belize's 2016-17 sovereign debt restructuring - its third episode in last 10 years. As was the case in the earlier two restructurings, in 2006-07 and in 2012-13, the 2016-17 debt restructuring was executed through collaborative engagement...

The International Monetary Fund (IMF) stated in spring of this year that a more timely restructuring of Greece's sovereign debt would have been beneficial. But what are the available options for early debt restructuring? The report argues that current reforms in the Euro area, in particular,...

Eine rechtzeitigere Restrukturierung der Staatsschulden Griechenlands wäre vorteilhaft gewesen - diese Beurteilung hat der Internationale Währungsfonds (IWF) im Frühjahr dieses Jahres abgegeben. Doch welche Lösungsansätze sind für eine frühe Schuldenrestrukturierung überhaupt denkbar?...

In this paper, the author considers sovereign debt in the form of one-period government bonds with default risk, which can be purchased by and traded among domestic and foreign investors. She shows that the "good equilibrium" is the only stable equilibrium under some quite general assumptions,...

Governments often issue bonds in foreign jurisdictions, which can provide additional legal protection vis-á-vis domestic bonds. This paper studies the effect of this jurisdiction choice on bond prices. We test whether foreign-law bonds trade at a premium compared to domestic-law bonds. We use...

The paper analyzes and tests various quantitative models to assess the probability of default of sovereign debt, such as scoring models, univariate analysis as well as logit models.The outcomes of the different models are not at a level that they could be used for forecasting or rating. There...

The paper quantifies the impact of the outbreak of the Russo-Ukrainian war on sovereign bond yields for 58 countries. Our findings based on event study methodology and multivariate cross-sectional regression analysis highlight the salient role of trade channel in shaping the markets' reaction to...

Since the mid 1990s, theories of speculative attacks have argued that fixed exchange rate regimes induce excessive borrowing in foreign currency as an optimal response to implicit guarantees that the government will not devalue the domestic currency. Using data on Brazilian firms before and...

This paper investigates the decrease in wage inequality among working age men in the Brazilian formal labor market by decomposing it into its permanent and transitory components. The permanent component refers to workers' productivity characteristics such as education and abilities, whereas the...

Renditespannen bei Wertpapieren und Länderrisiko: Eine dauerhafte Beziehung? In diesem Beitrag wird untersucht, ob sich bei Wertpapieren die Renditespannen für eine Darstellung des Länderrisikos eignen. Da Wertpapierkurse und -renditen auf dem Sekundärmarkt bestimmt werden, könnten sich im...