participate in the restructuring of commercial debt. …

We use a new, comprehensive data set on the sovereign debt investor base to document three novel empirical facts: (i …) sovereign debt is repatriated - that is, shifted from external private to domestic investors - prior to sovereign defaults; (ii … nature of defaults matters: external investors do not leave during preemptive debt restructurings. We further show that …

) that stipulate a suspension of debt payments when the government faces liquidity shocks in the form of an increase of the … risk more attractive for the government. In contrast, cocos that stipulate debt forgiveness when the government faces the …

Sovereign debt crises have been recurrent events over the past two centuries. In recent years, the timing of sovereign …

Quantitative models of sovereign debt predict that countries should default during deep recessions. However, empirical … research on sovereign debt has found a surprisingly large share of "good times" defaults (i.e., defaults that happen when GDP … results that are closer to the predictions of standard quantitative models of sovereign debt. …