Hidden public liabilities can reprice sovereign risk abruptly upon revelation. We study optimal default following such … a revelation in a quantitative sovereign default model and apply the framework to Senegal's 2024 debt audit, which …

Why do countries set sovereign debt ceilings if they keep raising them? This paper shows that debt ceilings can serve …-even without reducing total borrowing. We propose a new sovereign default model with long-term debt in which each government …-market countries operating under fiscal rules exhibit lower sovereign spreads and lower spread volatility, even though breaches and …

Emerging market economies (EMEs) regularly tap domestic and international capital markets through scheduled sovereign … bond auctions. In this paper, we leverage a novel dataset covering over 75,000 sovereign issuance events and 20 …

Theory suggests that corporate and sovereign bonds are fundamentally different, also because sovereign debt has no …”) bonds to high-yield emerging market sovereign bonds 2002-2021. Investor experiences in these two asset classes were …