Sameer Jain

Distressed Sovereign Restructured Debt Sameer Jain

Distressed Sovereign Restructured Debt Case StudiesTo include Distressed Sovereign Restructured Debt as an asset sub-class within portfolios, this study examines 20 sovereign default crises with 270 bonds in multiple emerging markets including Argentine, Bulgaria, Colombia, Ecuador, Iraq, Mexico, Nigeria, Panama, Peru, Philippines, South Africa, Turkey, Ukraine, and Venezuela. Given the large variation of returns between crisis episodes, aggregating statistics from these events is a spurious exercise; the sample size is much too small, restructurings idiosyncratic, haircuts and losses vary widely as well as heterogeneous debt security-level characteristics. The approach followed here is to parse the anatomy of each restructured deal - restructuring defined as a distressed debt exchange in which creditors receive instruments with less-favorable terms than the original issues - beginning with an examination of the original debt offer documents as well as the specifics of each deal. Notable Transactions Analyzed Include: Ukraine Debt Offer-April 2000 Republic of Ecuador Debt Exchange-August 2000 Republic of Argentina Debt Exchange-February 2001 Brazil and Mexico "Par for Par" Exchanges-March 2001 Republic of Argentina "Mega Debt Exchange"-June 2001 Republic of Turkey Domestic Debt Exchange-June 2001 Republic of Colombia Domestic Debt Exchange-June 2001 Republic of Panama Tender and Exchange-July 2001 Republic of Bulgaria Exchange Offer and Re-Opening-March & September 2002 Republic of Venezuela Domestic Debt Exchange Offer-December 2002 Republic of Nigeria Tender Offer-January 2003 Republic of Uruguay Global Debt Re-profiling-May 2003 Republic Of Panama Dual Tranche Global & Brady Bond Tender - February 2004 Republic Of Philippines Global & Brady Bond Exchange - February 2004 Republic of Panama Tender- November 2005 Republic of Iraq Commercial Debt Restructuring 2005 - 2006 Republic of South Africa Tender and Exchange Offer- May 2006 Republic of Brazil Par-for-Par Exchange- July 2006 Turkey Exchange Offer- September 2006 Uruguay Exchange/Tender Offer- October 2006