“Greece to withhold E300 million loan repayment” (Financial Times lead headline today). I am shocked, shocked to find that default is going on in Rick’s Sovereign Debt Café!A week ago, the FT helpfully provided an instructive table of the huge losses, or “haircuts,” taken by the credulous bondholders in a dozen sovereign debt defaults during the last two decades alone. Here they are:Haircuts on Sovereign Debt since 1998Argentina 77%Ecuador 38%Ethiopia …read more
Source: American Enterprise Institute for Public Policy Research