NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

LDC Borrowing with Default Risk

Jeffrey Sachs, Daniel Cohen

NBER Working Paper No. 925
Issued in July 1982
NBER Program(s):ITI, IFM

This paper presents a theoretical model to describe the effects of default risk on international lending to LDC sovereign borrowers. The threat of defaults in international lending is shown to give rise to many characteristics of the syndicated loan market: (1) quantity rationing of loans; (2) LDC policies designed to enhance creditworthiness; (3) prevalence of short maturities on international loans; and (4) a prevalence of bank lending relative to bond-market lending

download in pdf format
   (432 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w0925

Published: Kredit and Kapital, 1985

Users who downloaded this paper also downloaded* these:
Edwards w1172 LDC's Foreign Borrowing and Default Risk: An Empirical Investigation
Sachs w1189 Theoretical Issues in International Borrowing
Sachs w0861 LDC Debt in the 1980s: Risk and Reforms
Eichengreen and Mody w6408 What Explains Changing Spreads on Emerging-Market Debt: Fundamentals or Market Sentiment?
Edwards w1689 The Pricing of Bonds and Bank Loans in International Markets: An Empirical Analysis of Developing Countries' Foreign Borrowing
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us