Restructuring Sovereign Bonds: Holdouts, Haircuts and the Effectiveness of Cacs

Schumacher, Julian; Trebesch, Christoph; Fang, Chuck

doi:10.2139/ssrn.3519925

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Cited by 6 publications

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References 12 publications

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“…For Dominican Republic and Honduras I use the EMBI spread. For Belize I use the spread between 1-year T-Bill and the corresponding 1-year T-Bill.13 The average maturity of government debt of Belize, Dominica, Dominican Republic, and Grenada are taken fromSchumacher et al (2020). The average maturity for government debt in Antigua y Barbados and Jamaica are taken from the "Medium-Term Debt Management Strategy" of each country.…”

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confidence: 99%

Natural disasters, climate change, and sovereign risk

Mallucci

2022

Journal of International Economics

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mentioning

confidence: 99%

Natural disasters, climate change, and sovereign risk

Mallucci

2022

Journal of International Economics

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Clip Their Wings! Developments in the “Fight” Against Vulture Funds

Pauciulo

2023

State and Enterprise

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Ties that bind and blur: financialization and the evolution of sovereign debt as private contract

Datz¹

2021

Rev Evol Polit Econ

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The rich scholarship on the politics and finance of sovereign debt tends to take for granted debt’s most basic form: as a private contract. Nevertheless, legal challenges have been central to the contemporary evolution of sovereign debt dynamics thanks to litigating strategies rendered possible by — mostly standard — contractual stipulations in international sovereign bonds. By using a debt-as-private-contract lens, the paper highlights how exposed sovereign debtors present themselves to these global transactions, how foreign sovereign bond contracts anchor otherwise footloose finance in particular jurisdictions, and how contractual changes sparked by outlier cases of protracted litigation or recent turbulence in debt exchanges have been key to global efforts to reform debt governance around market-based parameters. The legal battle between Argentina and its holdout creditors in US courts is analyzed here to illustrate these dynamics given its significance in sparking contractual revisions. Ultimately, it is clear that credit and contract are inextricably linked. Contractual evolution is revealing of the legal risks taken on by sovereign debtors and their creditors in private markets. The cost of debt hence may go beyond relatively predictable financial calculations.

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Restructuring Sovereign Bonds: Holdouts, Haircuts and the Effectiveness of Cacs

Cited by 6 publications

References 12 publications

Natural disasters, climate change, and sovereign risk

Natural disasters, climate change, and sovereign risk

Clip Their Wings! Developments in the “Fight” Against Vulture Funds

Ties that bind and blur: financialization and the evolution of sovereign debt as private contract

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