International Economics Commons^™

Restructuring And Forgiveness In Financial Crises A: The Mexican Peso Crisis Of 1994-95, Christian M. Mcnamara, June Rhee, Andrew Metrick

Journal of Financial Crises

Following a year in which repeated political turmoil sapped investor confidence in Mexico, putting pressure on the peso and draining the country’s foreign exchange reserves, on December 22, 1994, the Mexican government sparked a financial crisis by unexpectedly abandoning its policy of anchoring the peso to the US dollar and instead allowing it to float freely. The resulting collapse of the peso left Mexico with $40 billion to $50 billion in external debt (much of it dollar-indexed) coming due in the near term and almost no foreign exchange reserves. Faced with the prospect that Mexico would either default on its …

On Emerging Asia-Pacific Equity Markets From The Perspective Of The Dynamics Of Mean And Volatility Spillovers, Li Xu

FIU Electronic Theses and Dissertations

This dissertation investigates the dynamics of mean and volatility spillovers from the U.S. and three large (regional) Asia-Pacific stock markets to ten small (local) ones from June 2008 to May 2013.

After a brief introduction to the main purposes and contributions of my research in Chapter 1, I examine the impact of lagged American and regional returns on the local markets in Chapter 2. By building up a univariate autoregressive model and treating lagged U.S. and regional returns as exogenous variables, I find that the local markets have statistically significant exposure to lagged returns of their own and the U.S. …

Efectos Del Comercio Exterior En El Crecimiento Económico Del Grupo Denominado Bric, Brasil, Rusia, India Y China En Los Años 1997 2012, Cindy Estefanía Monroy Díaz, Paula Stephanie Vergara Torres

Finanzas y Comercio Internacional

Con el objetivo de contribuir al debate de los BRIC, se presenta la siguiente monografía titulada “Efectos del comercio exterior en el crecimiento económico del grupo denominado BRIC (Brasil, Rusia, India y China) en los años 1997-2012”. A partir de un análisis de las dinámicas comerciales de cada país objeto de estudio, en contraste con el crecimiento económico en un periodo de 16 años, se comprueba de manera histórica la evolución y el alcance en materia comercial de países que se catalogan actualmente como economías emergentes. Seguido de esto, por medio de una adaptación del índice de Grubel & Lloyd …

Domestic Bonds, Credit Derivatives, And The Next Transformation Of Sovereign Debt, Anna Gelpern

Georgetown Law Faculty Publications and Other Works

Not long ago, financial markets in most poor and middle-income countries were shallow to nonexistent, and closed to foreigners. Governments often had to rely on risky borrowing abroad; the private sector had even fewer options. But between 1995 and 2005, domestic debt in the emerging markets grew from $1 trillion to $4 trillion. In Mexico, domestic debt went from just over 20% of the total government debt stock in 1995 to nearly 80% in 2007. Foreign and local investors are buying. Over the same period, derivative contracts to transfer emerging market credit risk surpassed the market capitalization of the benchmark …

After Argentina, Anna Gelpern

Georgetown Law Faculty Publications and Other Works

Argentina recently completed the largest sovereign bond restructuring in history. As soon as the government announced the results of its $100 billion tender in March 2005, editorial pages worldwide heralded a new era for sovereign debt, for the emerging markets and, occasionally, for international finance. Their views on Argentina's lessons were as disparate as they were definite. Some said the exchange would close the markets to middle-income countries. To others, it reaffirmed the markets' resilience. Some claimed it proved the need for statutory sovereign bankruptcy. Others said it clearly discredited the idea. Most spoke too soon. The deal took months …

Beyond Balancing The Interests Of Creditors And Developing States, Anna Gelpern

Georgetown Law Faculty Publications and Other Works

The traditional view of sovereign debt as a relationship between a developing country government and and its foreign private creditors is increasingly out of date. Financial institutions and individuals inside the borrowing countries are are becoming more and more important as creditors to their governments. At the same time, as countries remove restrictions on cross-border capital flows, foreign creditors are participating more actively in domestic law, local-currency debt markets. These developments imply fundamental changes in lending decisions and, where the loan goes bad, in the sovereign debt workout process.