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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 …
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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 …
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are used to define a measure of price sensitivity to credit risk perceptions, or credit duration, improving the ambiguity … of modified yield duration. …
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We revisit self-fulfilling rollover crises by exploring the potential uncertainty introduced by a gap in time (however small) between an auction of new debt and the payment of maturing liabilities. It is well known (Cole and Kehoe, 2000) that the lack of commitment at the time of auction to...
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