Questions tagged [sovereign-default]

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Why are these bond portfolio prices equal (case study on 2012 Greek debt restructuring)?

Consider the following case study from Berk and DeMarzo's Corporate Finance. My question is about the first sentence in the last paragraph: Assume that participation in the swap was voluntary (as ...
EE18's user avatar
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Is it worth it to diversify the "risk-free" portion of a portfolio across multiple assets?

I am looking into the constructing of my own sort of "structured product" and have been thinking about the risk profiles of the "risk-free" portion of products like this. Generally,...
QMath's user avatar
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On what basis do countries repay international loans? [closed]

Most countries have their own sovereign currency. Essentially they can print their currency. So how do countries repay their loans? And a similar question would arise while granting a loan to another ...
Nagendra's user avatar
6 votes
2 answers
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Is Mexico on the verge of defaulting on parts it’s national debt before Andrés López Obrador take office?

All bonds issued by Mexico with maturity scheduled for 2018 are traded at a huge discount of their face value. I mean whatever currency or stock exchange used here’s an example : For reference, they ...
user2284570's user avatar
4 votes
2 answers
564 views

Are AAA private-sector corporate bonds safer than government bonds?

Conventional wisdom says that government bonds are the safest investment there is. But the Indian government is rated only one level above junk. Aren't AAA-rated bonds of Indian companies safer? Haven'...
Kartick Vaddadi's user avatar
2 votes
2 answers
520 views

How to invest for the event of a US default? [closed]

I want to consider a special case of this question (so not a duplicate, in my mind, but forgive me if that's incorrect in the eyes of moderators). What happens to my savings if my country defaults or ...
Josiah's user avatar
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1 answer
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Where can I place my savings in to limit my exposure to the risk of European bank failures and sovereign debt defaults?

After looking at this stunning Euro Zone Bank Stress Test tool provided by Reuters, I see the danger and the hight level of interconnections that exists among Banks in EU. The actual scenario (...
Marco Demaio's user avatar
5 votes
2 answers
368 views

What are the risks of euro deposit accounts in Greek and Cypriot banks?

What is the risk of having 100k euro in accounts in Greek banks and Cypriot banks? Is there a guarantee? I assume that the state guarantee for deposits doesn't hold when a country defaults.
St.k's user avatar
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If the U.S. defaults on its debt, what will happen to my bank money? [closed]

Will I still be able to withdraw from my bank account if the U.S. defaults?
user541686's user avatar
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Would the effects of an anticipated default by a nation be mostly symbolic?

Given that the whole Greece saga has played out for a few years now -- and that most speculation is that Greece will default at some point -- if they finally do default, will it be mostly symbolic? ...
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What effect would sovereign default of a European country have on personal debt or a mortgage?

What effect would sovereign default of a European country have on personal debt, especially a mortgage?
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What happens to my savings if my country defaults or restructures its debt?

I live in a eurozone country that a lot of people think will soon default or restructure its debt. My family has a savings account in a bank here. A similar question has been asked before, but it isn'...
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