Talk:Sovereign bond

Sovereign bond

Sovereign bond, who came up with that name? It should be a government bond. - Jerryseinfeld 04:36, 21 Nov 2004 (UTC)

A municipality does not have sovereignity. A municipal bond is a government bond because it is (local) government. Possibly government bond should not redirect here but should be a disambiguation page. Paul Beardsell 07:12, 24 Nov 2004 (UTC)

You improve what I say by providing the links but the editing of another's comments on a talk page is not a good idea! Paul Beardsell 20:11, 26 Nov 2004 (UTC)

It is considered good practice to consult or at least invite comment before merging two articles. Paul Beardsell 00:45, 18 Dec 2004 (UTC)

I have NEVER heard of a municipal bond being called a government bond. Traditionally, government bonds were risk free bonds, issued by national governments in their own currency. sovereign bonds are bonds issued in a different currency. For govvies, traders & investors only bet on the direction of rates, whereas for sovereigns they would bet on the credit spread. With the euro, this distinction is much more murky, as euroland countries can't print their own currency. I would suggest to use the more common term government bonds, and redirect the sovereign bond page there. DocendoDiscimus 11:00, 12 September 2005 (UTC)

Theoretically with an independent central bank a government can default on its debt denominated in its own currency (the only case I know of is Russia 1998). MMMMM742 (talk) 09:41, 9 February 2010 (UTC)

There have been many tens of sovereign defaults in the past century, and many more before that. If you are interested in more info of a general nature in a very accessable format for non-economists, this webpage summarizes (in text, and very well I might add) a podcast with an economist who does the best job I've ever heard of clarifying the distinction between a sovereign default of external debt and a sovereign default of domestic debt. It is fairly early in the podcast, and you can see where from the textual summary should you want to find it. The author also mentions many of these specific country debt defaults that are discussed in the recent book by Rogoff and Reinhart (This Time is Different: Eight Centuries of Financial Folly, by Carmen Reinhart and Kenneth Rogoff.) N2e (talk) 13:38, 9 February 2010 (UTC)

There have been no real defaults ever, for a floating non-convertible currency, like the modern dollar, pound or yen. Russia was pegged then, and was foolish to default ruble debt. I believe the only example in Reinhart and Rogoff is the yen in 1942. Japan defaulted on UK & US payments. Since there was WWII at the time, this is a pretty silly example.John Z (talk) 10:26, 18 September 2010 (UTC)

merge with Government Debt

Shouldnt this be merged with Government Debt or that be merged with this? doles 14:50, 2005 Mar 23 (UTC)

sovereign default

sovereign default redirect here but seems worthy of its own article. Rod57 (talk) 19:26, 26 October 2008 (UTC)

I agree. See more extensive comment I just made in the section above for a good reference which would provide a lot of quantitative and qualitative detail on sovereign defaults over the past eight centuries. N2e (talk) 13:40, 9 February 2010 (UTC)

I agree. Crucial missing page. Rinconsoleao (talk) 07:46, 14 June 2010 (UTC) Recently I created a page on Sovereign default. Rinconsoleao (talk) 10:17, 9 August 2010 (UTC)

Default

In the case of default, couldn't the creditors claim the property of the government (e.g. the parliamanent building)? MMMMM742 (talk) 09:41, 9 February 2010 (UTC)

Usually not, because (both in political theory and in practice) the state has a "monopoly on the use of force" and thus, the STATE gets to make and enforce the "law" (human legislation) on such things. Short of revolution or war which results in a loss of power of the state over it's territory, the existing government will continue to exert control over its property even after sovereign default. N2e (talk) 13:22, 9 February 2010 (UTC)