What Drives Sovereign Debt Portfolios of Banks in a Crisis Context?

2018 ◽  
Author(s):  
Matias Lamas ◽  
Javier Mencia
Keyword(s):  
Sovereign Debt ◽  
Debt Portfolios

Sovereign Debt Portfolios, Bond Risks, and the Credibility of Monetary Policy

2020 ◽  
Vol 75 (6) ◽  
pp. 3097-3138
Author(s):  
WENXIN DU ◽  
CAROLIN E. PFLUEGER ◽  
JESSE SCHREGER
Keyword(s):  
Monetary Policy ◽  
Sovereign Debt ◽  
Debt Portfolios

Sustainable Issuer versus Sustainable Issuance: Providing Public Issuers of Sustainable Bonds in Latin America and the Caribbean with Insight into the Nascent Universe of ESG Ratings

2021 ◽  
Author(s):  
Rodolphe Bocquet ◽  
Isabelle Braly-Cartillier ◽  
Mariana Pombo ◽  
Antoine De Salins
Keyword(s):  
Decision Making ◽  
Latin America ◽  
Sovereign Debt ◽  
Regulatory Requirements ◽  
Investment Policies ◽  
Responsible Investment ◽  
Bond Issuers ◽  
Decision Making Processes ◽  
The Caribbean ◽  
Debt Portfolios

Based on recent works and experiences from issuers in Latin America and the Caribbean, and complemented by interviews of experts, this study provides public issuers with insight and encouragement to engage into the nascent world of environmental, social, and governance (ESG) evaluations and assessments, ratings, scoring, and profiles. Increasingly, investors are integrating ESG into their decision-making processes for various reasons, including risk-return considerations, client mandates, disclosure commitments, and regulatory requirements. Although an increasing number of investors have ESG investing strategies and responsible investment policies in place, ESG factors have primarily been integrated into decision making in equity rather than fixed income portfolios. Few investors have a systemic approach to ESG integration in debt portfolios, especially in sovereign debt. Their number is growing, however, and investors increasingly are demanding ESG ratings of bond issuers, especially thematic bond issuers, whether corporate or sovereign.

Lending to the Borrower from Hell

2017 ◽  
Author(s):  
Mauricio Drelichman ◽  
Hans-Joachim Voth
Keyword(s):  
United States ◽  
Sixteenth Century ◽  
Sovereign Debt ◽  
Risk Sharing ◽  
The United States ◽  
Philip Ii ◽  
Loan Contracts ◽  
The Right ◽  
Intelligent Model ◽  
New Evidence

Why do lenders time and again loan money to sovereign borrowers who promptly go bankrupt? When can this type of lending work? As the United States and many European nations struggle with mountains of debt, historical precedents can offer valuable insights. This book looks at one famous case—the debts and defaults of Philip II of Spain. Ruling over one of the largest and most powerful empires in history, King Philip defaulted four times. Yet he never lost access to capital markets and could borrow again within a year or two of each default. Exploring the shrewd reasoning of the lenders who continued to offer money, the book analyzes the lessons from this historical example. Using detailed new evidence collected from sixteenth-century archives, the book examines the incentives and returns of lenders. It provides powerful evidence that in the right situations, lenders not only survive despite defaults—they thrive. It also demonstrates that debt markets cope well, despite massive fluctuations in expenditure and revenue, when lending functions like insurance. The book unearths unique sixteenth-century loan contracts that offered highly effective risk sharing between the king and his lenders, with payment obligations reduced in bad times. A fascinating story of finance and empire, this book offers an intelligent model for keeping economies safe in times of sovereign debt crises and defaults.

European Economies Stability Faced With Potential Outburst of Sovereign Debt Crisis. An Empirical Study Using Neural Network

2013 ◽  
Vol 12 (2) ◽  
pp. 3255-3260
Author(s):  
Stelian Stancu ◽  
Alexandra Maria Constantin
Keyword(s):  
Neural Network ◽  
Sovereign Debt ◽  
Debt Crisis ◽  
Banking System ◽  
Sovereign Debt Crisis ◽  
European Level ◽  
Continuous Growth ◽  
Economic Context ◽  
European Economies ◽  
The Impact

Instilment, on a European level, of a state incompatible with the state of stability on a macroeconomic level and in the financial-banking system lead to continuous growth of vulnerability of European economies, situated at the verge of an outburst of sovereign debt crises. In this context, the current papers main objective is to produce a study regarding the vulnerability of European economies faced with potential outburst of sovereign debt crisis, which implies quantitative analysis of the impact of sovereign debt on the sensitivity of the European Unions economies. The paper also entails the following specific objectives: completing an introduction in the current European economic context, conceptualization of the notion of “sovereign debt crisis, presenting the methodology and obtained empirical results, as well as exposition of the conclusions.

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