Journal ArticleDOI
Towards Sovereign Equity
Stephen Park,Tim R Samples +1 more
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TLDR
In this paper, the authors examined the use of GDP-linked securities in recent sovereign debt restructurings by Argentina and Greece and concluded that these applications offer opportunities to help manage sovereign finance in the absence of international financial regulation.Abstract:
Sovereigns are unique market participants in the global financial system, and sovereign debt markets largely operate in a legal and regulatory void. As a result, sovereign finance is a laboratory for contractual and institutional design, which raises unique challenges and opportunities. This Article adds an important and timely perspective by examining the concept of equity in sovereign debt finance. Governments, unlike corporations, rely almost exclusively on debt to finance their investments and operations. GDP-linked securities, which provide interest payments indexed to the sovereign issuer’s rate of growth, are sovereign debt instruments with certain equity-like characteristics. This Article considers whether innovation towards sovereign equity can help mitigate problems associated with sovereign debt crises. To address this question, we analyze the use of GDP-linked securities in recent sovereign debt restructurings by Argentina and Greece. Drawing on this analysis, we explore more broadly the legal implications of sovereign equity, and conclude that these applications offer opportunities to help manage sovereign finance in the absence of international financial regulation.read more
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Book ChapterDOI
Green Bonds and Beyond
TL;DR: In this article, the authors explore the regulatory and corporate governance issues arising from green bonds, along with social bonds and sustainability bonds, and propose reforms to corporate governance practices to enhance the monitoring and control powers of green bond investors.
Journal ArticleDOI
Can Human Development Bonds Reduce the Agency Costs of the Resource Curse
TL;DR: In this article, the authors propose a Human Development Bond (HDB) with a variable coupon schedule that both insures issuers against recessions and incentivizes them to encourage investment in human capital when economic growth is strong.
Journal ArticleDOI
An Analysis of Argentina's 2001 Default Resolution
Martin Guzman,Martin Guzman +1 more
TL;DR: Argentina's 2001 default was followed by a complex debt restructuring that included a long legal dispute with so-called vulture funds and other holdout creditors, and the resolution of the sovereign default took almost 15 years.
References
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Book ChapterDOI
Green Bonds and Beyond
TL;DR: In this article, the authors explore the regulatory and corporate governance issues arising from green bonds, along with social bonds and sustainability bonds, and propose reforms to corporate governance practices to enhance the monitoring and control powers of green bond investors.
Journal ArticleDOI
Can Human Development Bonds Reduce the Agency Costs of the Resource Curse
TL;DR: In this article, the authors propose a Human Development Bond (HDB) with a variable coupon schedule that both insures issuers against recessions and incentivizes them to encourage investment in human capital when economic growth is strong.
Journal ArticleDOI
An Analysis of Argentina's 2001 Default Resolution
Martin Guzman,Martin Guzman +1 more
TL;DR: Argentina's 2001 default was followed by a complex debt restructuring that included a long legal dispute with so-called vulture funds and other holdout creditors, and the resolution of the sovereign default took almost 15 years.