EconPapers    
Economics at your fingertips  
 

The financial penalty for "unfair" debt: The case of Cuban bonds at the time of independence

Stephanie Collet ()

ULB Institutional Repository from ULB -- Universite Libre de Bruxelles

Abstract: Unfair sovereign debts, used, for instance, to suppress a rebellion, may be declared odious and not be repaid once the former regime is overthrown. Bondholders may therefore require a premium to compensate for the higher default risk due to the potentially odious character of these debts. On the basis of an original database of Cuban bonds, the paper shows the existence of a risk premium of at least 200 basis points which penalized bonds issued by the Spanish occupation regime. Bond market reactions to events changing the perception that the debts were unfair or that they would be repudiated are analysed on the basis of a structural VAR. © 2013 European Historical Economics Society.

Date: 2013-08
Note: SCOPUS: ar.j
References: Add references at CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Published in: European review of economic history (2013) v.17 n° 3,p.364-387

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: The financial penalty for 'unfair' debt: the case of Cuban bonds at the time of independence (2013) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ulb:ulbeco:2013/168975

Ordering information: This working paper can be ordered from
http://hdl.handle.ne ... lb.ac.be:2013/168975

Access Statistics for this paper

More papers in ULB Institutional Repository from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels ().

 
Page updated 2022-05-08
Handle: RePEc:ulb:ulbeco:2013/168975