Series: IMF Working Papers
Author(s): Luis Catão , and Rui Mano
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 21 July 2015
Keywords: Country Risk, Interest Rate Spread, Haircut, market, debt, default, interest, interest rate, International Lending and Debt Problems, General
We re-assess the view that sovereigns with a history of default are charged only a small and/or short-lived premium on the interest rate warranted by observed fundamentals. Our reassessment uses a metric of such a...