Recent reports suggest that governments of some low-income countries are reluctant to restructure debts owed to private creditors for fear of losing market access and pushing up future borrowing costs. But history suggest that the “defaulters’ premium” on dollar bonds fades over time. And in the current crisis, this premium may be smaller and fade more quickly.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services