[PDF] Top 20 Sovereign debt and incentives to default with uninsurable risks

... on sovereign default risk, which moves away from the traditional risk-neutral pricing so as to provide a better understanding of risk premia, the term structure of interest rates, and move- ments along the ... See full document

... upon default seems, besides necessary for their claim, more in the spirit of Bulow and Rogoff (1989)’s cash-in-advance contract (an up-front payment in ex- change of positive contingent deliveries in the ...after ... See full document

... ment incentives for sovereign borrowers is a long standing ...reputational incentives were sufficient to prevent strategic default in the absence of an external enforcement mech- ...prevent ... See full document

... of default, and have access to a commitment technology for delivering on promises next period while small lenders do ...must default on it’s ...of debt servicing in the good state and the ... See full document

... public debt sustainability in Argentina are the revision of methodologies and statistics in the public debt field, the more transparency of reports concerning public debt management, including the ... See full document

... outstanding debt in the event of a crisis, and thus demand a higher interest rate compared to the present ...improve debt structures by reducing incentives to issue “crisis-prone” debt forms ... See full document

... higher debt makes the cost of default higher (see Section ...higher debt makes the benefit of defaulting higher: the counterfactual tax break that households enjoy during defaults is larger with ... See full document

... public debt” policies in low debt threshold ...faced default situation, although they had very low external debt ...with debt to GDP below 60 percent, meaning still in control following ... See full document

... Higher sovereign default risks can transfer to banks via a number of chan- ...of sovereign bonds generate impair- ment losses on trading books that weaken bank balance sheets (market ...higher ... See full document

... quantitative sovereign default model in the tradition of Eaton and Gersovitz (1981), and find that conditional on a level of debt, default incentives are U shaped in the capital stock: ... See full document

... government debt ratio implies a higher probability of a debt crisis occurring in ...(2016), debt expanded twice as fast as the economy in China and the massive growth of debt created liquidity ... See full document

... politicians are more likely to internalize the government’s intertemporal budget constraint and bring it under control. A case in point is Canada’s experience during the 1990s when the Liberal Party enjoyed a prolonged ... See full document

... The sovereign, then being impatient relative to lenders, takes advantage of this to borrow on world ...before default, the level of debt increases 6% on average, which makes x, ∆x, and ∆(−b) all ... See full document

... endogenous default model for small open economies with financial frictions and a non-trivial bailout choice to study the e↵ects of stabilization policies on sovereign spreads, private credit rates, and ... See full document

... voluntary debt exchange at non-market prices, which raises the question how a high participation rate can be ...market debt and should therefore also be exchanged into new long-term Par or Discount bonds at ... See full document

... public debt ratio (in spite of the relevance of the ...that default risk on sovereign debt is being dealt with ...the default likelihood distribution is the ratio of external ... See full document

... EU sovereign bonds since the start of the sovereign debt ...and sovereign debt crises to fifteen EMU ...the sovereign debt crisis affects stock market developments they ... See full document

... public debt during the crisis period and afterwards ...of sovereign bonds issued by Eurozone governments and many creditors moved from risky to safe investments, exhibiting flight to quali- ...credit ... See full document

... Domestic debt may also explain the paradox of why some governments seem to choose inflation rates far above any level that might be rationalized by seignorage revenues levered off the monetary ...domestic ... See full document

... endogenous sovereign default model is not regarded as an appropriate tool for the analysis of the European debt ...new sovereign debt crisis model which is applicable to an advanced ... See full document