macroeconomic fundamentals and sectoral net worth can affect the likelihood of undergoing default …

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 … selective default probability can be priced in bond yield spreads. Selective default risk accounted for one third of the yield …

applying insurance theory is useful. We model risk neutral agents choosing portfolios of government bonds of n countries in a …