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Balance sheets and debt crises : empirical regularities for modern cases of sovereign distress

Huertas Laverde, Gonzalo; Meyer Cirkel, Alexis - 2021

Public and private sector balance sheets are an important component to any analysis of debt sustainability. A vulnerable and indebted private sector can become a sudden liability for the government; alternatively, resilient household and bank balance sheets may reveal potential sources of...

Persistent link: https://www.econbiz.de/10012613508

Covid-19 and the credit cycle : 2020 revisited and 2021 outlook

Altman, Edward I. - In: The journal of credit risk : published quarterly by … 17 (2021) 4, pp. 1-13

Persistent link: https://www.econbiz.de/10013185678

Structuring and Restructuring Sovereign Debt : The Role of a Bankruptcy Regime

Bolton, Patrick - 2011

In an environment characterized by weak contractual enforcement, sovereign lenders can enhance the likelihood of repayment by making their claims more difficult to restructure ex post. We show however, that competition for repayment among lenders may result in a sovereign debt that is...

Persistent link: https://www.econbiz.de/10012756829

Debt Dilution and Seniority in a Model of Defaultable Sovereign Debt

Chatterjee, Satyajit - 2013

An important ineffciency in sovereign debt markets is debt dilution, wherein sovereigns ignore the adverse impact of new debt on the value of existing debt and, consequently, borrow too much and default too frequently. A widely proposed remedy is the inclusion of seniority clause in sovereign...

Persistent link: https://www.econbiz.de/10013078782

Rollover Risk : Ideating a U.S. Debt Default

Schwarcz, Steven L. - 2014

avoided, and how those consequences could be mitigated. To that end, the article differentiates defaults caused by insolvency …

Persistent link: https://www.econbiz.de/10013063313

Sustainability, Debt Management, and Public Debt Policy in Japan

Doi, Takero - 2014

The purpose of this paper is to analyze sustainability issues of Japan%u2019s fiscal policy and then to discuss the debt management policy using the theoretical models and numerical studies. We also investigate the desirable coordination of fiscal and monetary authorities toward fiscal...

Persistent link: https://www.econbiz.de/10012752153

Subnational Debt, Insolvency, and Market Development

Canuto, Otaviano; Liu, Lili - 2014

insolvency. This note outlines a set of aligned fiscal incentives that should be in place, as well as the design issues to be … experiences with subnational debt restructuring, insolvency frameworks, and debt market development. This note suggest a range of … that can be used to effectively manage the insolvency risks that will inevitably accompany the new dynamism of subnational …

Persistent link: https://www.econbiz.de/10012560946

The probability distribution of bankruptcy upon new debt issuances

Parnes, Dror - In: International journal of economics and finance 5 (2013) 4, pp. 21-30

Persistent link: https://www.econbiz.de/10009737862

Good Debt, Bad Debt : Family Debt Portfolios and Financial Burdens

Xiao, Jing Jian; Yao, Rui - 2021

ratio > 40%), debt delinquency (60+ days late for debt payments), and insolvency (total liability > total asset). Debt … insolvency. These results are used to identify warning debt portfolios in terms of financial burden indicators. Among these debt … portfolios, the top warning portfolios for debt pressure, debt delinquency, and insolvency are mortgage-vehicle-other debts …

Persistent link: https://www.econbiz.de/10013313876

Sovereign debt standstills

Hatchondo, Juan Carlos; Martinez, Leonardo; Sosa … - 2020

As a response to economic crises triggered by COVID-19, sovereign debt standstill proposals emphasize debt payment suspensions without haircuts on the face value of debt obligations. We quantify the effects of standstills using a standard default model. We find that a one-year standstill...

Persistent link: https://www.econbiz.de/10012486150