What went wrong? The Puerto Rican debt crisis, the “Treasury Put,” and the failure of market discipline

Bob Chirinko

Journal of Corporate Finance, 2023, vol. 80, issue C

Abstract: What went wrong? Why did seemingly rational, forward-looking bond investors continue to purchase Puerto Rican debt with only a modest risk premium? Why did financial markets fail to exercise market discipline and restrict capital flows to Puerto Rico?

Keywords: Puerto Rican debt crisis; Implicit government guarantees; Failure of market discipline (search for similar items in EconPapers)
JEL-codes: G01 G18 H74 H81 (search for similar items in EconPapers)
Date: 2023
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Related works:
Working Paper: What Went Wrong? The Puerto Rican Debt Crisis, the "Treasury Put," and the Failure of Market Discipline (2022)
Working Paper: What went wrong?: The Puerto Rican debt crisis, the "Treasury Put," and the failure of market discipline (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:80:y:2023:i:c:s0929119923000585

DOI: 10.1016/j.jcorpfin.2023.102409

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