Bolton, Patrick; Gulati, Mitu; Panizza, Ugo - 2022 - Draft Date: December 5, 2022
We review the state of the sovereign debt literature and point out that the canonical model of sovereign debt cannot be … easily reconciled with several facts about sovereign debt pricing and servicing. We identify and classify twenty puzzles … puzzles into three categories: puzzles about how sovereigns issue debt; puzzles about the pricing of sovereign debt; and …