The market reaction to legal shocks and their antidotes : lessons from the sovereign debt market

  • This Article examines the market reaction to a series of legal events concerning the judicial interpretation of the pari passu clause in sovereign debt instruments. More generally, the Article provides insights into the reactions of investors (predominantly financial institutions), issuers (sovereigns), and those who draft bond covenants (lawyers), to unanticipated changes in the judicial interpretation of certain covenant terms.

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Author:Michael Bradley, James D. Cox, Mitu Gulati
Parent Title (German):Working paper series / Johann-Wolfgang-Goethe-Universität, Institute for Law and Finance ; 87
Series (Serial Number):Working paper / Johann-Wolfgang-Goethe-Universität, Institut for Law and Finance (87)
Publisher:Inst. for Law and Finance
Place of publication:Frankfurt am Main
Document Type:Working Paper
Year of Completion:2008
Year of first Publication:2008
Publishing Institution:Universitätsbibliothek Johann Christian Senckenberg
Release Date:2008/08/08
Institutes:Rechtswissenschaft / Rechtswissenschaft
Dewey Decimal Classification:3 Sozialwissenschaften / 34 Recht / 340 Recht
Licence (German):License LogoDeutsches Urheberrecht