Sovereign debt has been a major feature of the international financial system for centuries.

With more than 40 trillion of sovereign debt in global markets at any given time, that is a very high risk game.

Financial markets have reacted so strongly because investors now comprehend that sovereign debt is the debt of a sovereign that can simply decide not to pay.

But when private creditors hold sovereign debt, organizing them creates a new challenge with each episode.

In the eurozone, the problem is member countries sovereign debt in China, the problem is borrowing linked to local governments.

Sovereign Environmental Risk

But that begs the question why should an involuntary restructuring lead to worse contagion than a voluntary restructuring of comparable depth? If the banking system were well regulated, with banks holding sovereign debt having purchased insurance, an involuntary restructuring should perturb financial markets less.

If the banking system were well regulated, with banks holding sovereign debt having purchased insurance, an involuntary restructuring should perturb financial markets less.

Sovereign Military Order of Malta

If the EU wants a monetary union in which sovereign debt is relatively homogenous with respect to risk, fiscal discipline must be similarly homogenous.

WASHINGTON, DC Sovereign debt has been back in the news recently, this time because of a United States Supreme Court ruling concerning Argentine debt.

The Sovereign Order of Malta was also represented by an observer.

Traditionally, sovereign risk has been concentrated in emerging market economies.

Italy

Debt

Who do you owe?

Absent external assistance and a credible plan for restoring fiscal order, Greek sovereign debt could not be rolled over, forcing a default, probably in the form of a restructuring of Greek debt.

Merger In 2004, BMG and Sony merged their music holdings into a joint venture called Sony BMG.

Eurozone sovereign debt turned out not to be homogenous with respect to risk.

Kofuyu was honored...

Not to be left out, other companies are looking at their business holdings to ask what can be carved out and sold off.

Duty calls.

Солдатский долг Маршала В. Дайнес.

Modify Loan

Modify Loan...

Long

(A duty?

Gospel duty!

Marital duty?

She just does her duty to me.

Your debt is mine, Mr. Davis.

The result will be chain reactions similar to those seen in Europe s sovereign debt crisis, with a vicious circle of sovereign and bank debt leading to credit rating downgrades and a sharp increase in bond yields.

Instead, they focused exclusively on US foreign debt, ignoring household debt (mortgage and consumer debt), public debt, business debt, and financial debt.

China s Green Debt

Debt and Delusion

The American Way of Debt

The national debt is growing.

What's your debt?

It's your duty.

It's your duty.

That's your duty.

It's our duty.

That's your duty.

A promise is a debt.

My Love Must Wait.