Take the Short Route∗ How to repay and restructure sovereign debt with multiple maturities

Abstract

We address the question of whether and how a sovereign should reduce its external indebtedness when default is a significant possibility, with a particular focus on whether a sovereign should buy back or dilute existing long-term sovereign bonds. Our main finding is that when reduction of debt is optimal, the sovereign should remain passive in the long-term… (More)

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Citations per Year

Citation Velocity: 8

Averaging 8 citations per year over the last 3 years.

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