Sovereign Cocos /

We study a model of equilibrium sovereign default in which the government issues cocos (contingent convertible bonds) that stipulate a suspension of debt payments when the government faces liquidity shocks in the form of an increase of the bondholders' risk aversion. We find that in spite of re...

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Bibliographic Details
Main Author: Hatchondo, Juan Carlos
Other Authors: Martinez, Leonardo, Onder, Kursat, Roch, Francisco
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2022.
Series:IMF Working Papers; Working Paper ; No. 2022/078
Subjects:
Online Access:Full text available on IMF