Sovereign Debt: From Safety to Default

ISBN-13: 9780470922392 / Angielski / Twarda / 2011 / 449 str.

Robert W Kolb

Opis

An intelligent analysis of the dangers, opportunities, and consequences of global sovereign debt Sovereign debt is growing internationally at a terrifying rate, as nations seek to prop up their collapsing economies. One only needs to look at the sovereign risk pressures faced by Greece, Spain, and Ireland to get an idea of how big this problem has become. Understanding this dilemma is now more important than ever, that's why Robert Kolb has compiled Sovereign Debt. With this book as your guide, you'll gain a better perspective on the essential issues surrounding sovereign debt and default through discussions of national defaults, systemic risk, associated costs, and much more. Historical studies are also included to provide a realistic framework of reference.

• Contains up-to-date research and analysis on sovereign debt from today's leading practitioners and academics
• Details the dangers of defaults and their associated systemic risks
• Explores the past, present, and future of sovereign debt

The repercussions of a national default are all-encompassing as global markets are intricately interwoven in the modern world. Sovereign Debt examines what it will take to overcome the challenges of this market and how you can deal with the uncertainty surrounding it.

Spis treści

Introduction.

Acknowledgments.

Part I: The Political Economy of Sovereign Debt.

1 Sovereign Debt: Theory, Defaults, and Sanctions (Robert W. Kolb).

2 The Institutional Determinants of Debt Intolerance (Raffaela Giordano and Pietro Tommasino).

3 Output Costs of Sovereign Default (Bianca De Paoli, Glenn Hoggarth, and Victoria Saporta).

4 Spillovers of Sovereign Default Risk: How Much is the Private Sector Affected (Udaibir S. Das, Michael G. Papaioannou, and Christoph Trebesch).

5 Sovereign Debt Problems and Policy Gambles (Samuel W. Malone).

6 Sovereign Debt and the Resource Curse (Mare Sarr, Erwin Bulte, Chris Meissner, and Tim Swanson).

7 Sovereign Debt and Military Conflict (Zane M. Kelly).

Part II: Making Sovereign Debt Work.

8 Fiscal Policy, Government Institutions, and Sovereign reditworthiness (Bernardin Akitoby and Thomas Stratmann).

9 Corruption and Creditworthiness: Evidence from Sovereign Credit Ratings (Craig A. Depken, II, Courtney L. LaFountain, and Roger B. Butters).

10 Institutions, Financial Integration, and Complementarity (Nicola Gennaioli, Alberto Martin, and Stefano Rossi).

11 Loans versus Bonds: The Importance of Potential Liquidity Problems for Sovereign Borrowers (Issam Hallak and Paul Schure).

12 First–Time Sovereign Bond Issuers: Considerations in Accessing International Capital Markets (Udaibir S. Das, Michael G. Papaioannou, and Magdalena Polan).

13 A Note on Sovereign Debt Auctions: Uniform or Discriminatory (Menachem Brenner, Dan Galai, and Orly Sade)?

14 Pension Reform and Sovereign Credit Standing (Alfredo Cuevas, María González, Davide Lombardo, and Arnoldo López–Marmolejo).

Part III: Sovereign Defaults, Restructurings, and the Resumption of Borrowing.

15 Understanding Sovereign Default (Juan Carlos Hatchondo, Leonardo Martinez, and Horacio Sapriza).

16 Are Sovereign Defaulters Punished?: Evidence from Foreign Direct Investment Flows (Michael Fuentes and Diego Saravia).

17 Supersanctions and Sovereign Debt Repayment (Kris James Mitchener and Marc D. Weidenmier).

18 Debt Restructuring Delays: Measurement and Stylized Facts (Christoph Trebesch).

19 IMF Interventions in Sovereign Debt Restructurings (Javier Díaz–Cassou and Aitor Erce).

20 Resuming Lending to Countries following a Sovereign Debt Crisis (Luisa Zanforlin).

Part IV: Legal and Contractual Dimensions of Restructurings and Defaults.

21 A Code of Conduct for Sovereign Debt Restructuring: An Important Component of the International Financial Architecture (Kathrin Berensmann)?

22 Governing Law of Sovereign Bonds and Legal Enforcement (Issam Hallak).

23 Sovereign Debt Restructuring: The Judge, the Vultures and Creditor Rights (Marcus H. Miller and Dania Thomas).

24 Sovereign Debt Documentation and the Pari Passu Clause (Umakanth Varottil).

25 Collective Action Clauses in Sovereign Bonds (Sönke Häseler).

26 Sovereignty, Legitimacy, and Creditworthiness (Odette Lienau).

27 Odious Debts or Odious Regimes? (Patrick Bolton and David A. Skeel, Jr.)

28 Insolvency Principles: The Missing Link in the Odious Debt Debate (Mechele Dickerson).

Part V: Historical Perspectives.

29 The Baring Crisis and the Great Latin American Meltdown of the 1890s (Kris James Mitchener and Marc D. Weidenmier).

30 How Government Bond Yields Reflect Wartime Events: The Case of the Nordic Market (Daniel Waldenström and Bruno S. Frey).

31 How Important Are the Political Costs of Domestic Default?: Evidence from World War II Bond Markets (Daniel Waldenström).

32 Emerging Market Spreads at the Turn of the Twenty–First Century: A Roller Coaster (Sergio Godoy).

Part VI: Sovereign Debt in Emerging Markets.

33 Sovereign Default Risk and Implications for Fiscal Policy (Gabriel Cuadra and Horacio Sapriza).

34 Default Traps (Luis A.V. Catão, Ana Fostel, and Sandeep Kapur).

35 Self–Fulfilling and Self–Enforcing Debt Crises (Daniel Cohen and Sebastien Villemot).

36 The Impact of Economic and Political Factors on Sovereign Credit Ratings (Constantin Mellios and Eric Paget–Blanc).

37 Sovereign Bond Spreads in the New European Union Countries (Ioana Alexopoulou, Irina Bunda, and Annalisa Ferrando).

38 Can Sovereign Credit Ratings Promote Financial Sector Development and Capital Inflows to Emerging Markets (Suk–Joong Kim and Eliza Wu)?

39 Country Debt Default Probabilities in Emerging Markets: Were Credit Rating Agencies Wrong (Angelina Georgievska, Ljubica Georgievska, Dr Aleksandar Stojanovic, and Dr Natasa Todorovic)?

40 The International Stock Market Impact of Sovereign Debt Ratings News (Miguel A. Ferreira and Paulo M. Gama).

Part VII: Sovereign Debt and Financial Crises.

41 Equity Market Contagion and Co–movement: Industry Level Evidence (Kate Phylaktis and Lichuan Xia).

42 An Insolvency Procedure for Sovereign States: A Viable Instrument for Preventing and Resolving Debt Crises (Kathrin Berensmann and Angélique Herzberg)?

43 From Banking to Sovereign Debt Crisis in Europe (Bertrand Candelon and Franz C. Palm).

44 From Financial Crisis to Sovereign Risk (Carlos Caceres, Vincenzo Guzzo, and Miguel Segoviano).

45 Sovereign Spreads and Perceived Risk of Default Re–Visited (Abolhassan Jalilvand and Jeannette Switzer).

46 What Explains the Surge in Euro Area Sovereign Spreads During the Financial Crisis of 2007–09 (Maria–Grazia Attinasi, Cristina Checherita, and Christiane Nickel)?

47 Euro Area Sovereign Risk During the Crisis (Silvia Sgherri and Edda Zoli).

48 Facing the Debt Challenge of Countries That Are Too Big To Fail (Steven L. Schwarcz).

Index.

O autorze

Robert W. Kolb (Chicago, IL) is the Frank W. Considine Chair of Applied Ethics and Professor of Finance at Loyola University, Chicago. Prior, he was the Assistant Dean, Business and Society, and Director, Center for Business and Society, at the University of Colorado at Boulder, Department Chairman at University of Miami, and he also taught at Emory University and University of Florida. Professor Kolb is the author of over 20 books on finance, derivatives, and futures, and has authored numerous articles in leading finance journals such as Financial Review, Journal of Futures Markets, Journal of Financial Engineering, Journal of Financial Economics, and Journal of Portfolio Management, among many others.

Blurb

SOVEREIGN DEBT

The Robert W. Kolb Series in Finance is an unparalleled source of information dedicated to the most important issues in modern finance. Each book focuses on a specific topic in the field of finance and contains contributed chapters from both respected academics and experienced financial professionals. As part of the Robert W. Kolb Series in Finance, Sovereign Debt takes a comprehensive look at the key themes surrounding this topic, namely how sovereign debt works and how it affects our world.

Sovereign borrowing has been around as long as there have been states. And while the history of sovereign debt may include many episodes of default, it is essential to our future financial and societal stability. Filled with in–depth insights and expert advice, this timely guide contains some of the most cutting–edge thinking on sovereign debt. Page by page, it clearly covers a wide array of issues, from defaults and restructurings to the opportunities and dangers of sovereign debt in today′s globalized financial arena.

Divided into seven comprehensive sections, this volume will help you gain a deeper understanding of sovereign debt, through discussions of:

• The overarching theory of sovereign debt and the levels of debt nations can sustain
• Sovereign debt and financial crises
• The management of sovereign debt and the interaction between sovereign debt and other obligations of the state, such as pensions
• How changes in sovereign debt ratings affect stock markets
• The legal and contractual dimensions of restructurings and defaults
• Whether sovereign defaulters are really punished

While the saga of sovereign debt has many chapters, understanding them is now more important than ever. Engaging and informative, this timely guide will help you put many of the issues associated with this area of international finance in perspective.