Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/278324 
Year of Publication: 
2022
Series/Report no.: 
Graduate Institute of International and Development Studies Working Paper No. HEIDWP27-2022
Publisher: 
Graduate Institute of International and Development Studies, Geneva
Abstract: 
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. Some are well known and documented, others are less so and are sometimes based on anecdotal evidence. We classify these puzzles into three categories: puzzles about how sovereigns issue debt; puzzles about the pricing of sovereign debt; and puzzles about sovereign default and the working out of defaults. We conclude by suggesting possible avenues for new research aimed at reconciling theory with what we observe in the real world.
Subjects: 
Sovereign Debt
Sovereign Default
Public Debt
JEL: 
F30
F34
G15
K12
Document Type: 
Working Paper

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