Foreign creditors' business cycles influence both the process and the outcome of sovereign debt restructurings. We …, and nd that when creditors experience high GDP growth, restructurings are delayed and settled with smaller haircuts. To …

This paper calls attention to the role of the secondary market in shortening the duration of sovereign debt … renegotiation. Consider a dynamic bargaining game with incomplete information between a government and creditors. The creditors … equilibrium because the government uses costly delays to screen the creditors' reservation. When the creditors trade on the …