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Limited joint liability in structured Eurobonds: Pricing the political costs

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  • Bauer, Christian
  • Adolph, Marc-Patrick

Abstract

We introduce an analytical tool to study the effects of a limited joint liability component for several variants of Eurobonds. Our approach allows to optimize the degree of jointness and therefore could overcome the huge and emotionally influenced political obstacle of joint liability.

Suggested Citation

  • Bauer, Christian & Adolph, Marc-Patrick, 2021. "Limited joint liability in structured Eurobonds: Pricing the political costs," Journal of International Money and Finance, Elsevier, vol. 113(C).
    • Handle: RePEc:eee:jimfin:v:113:y:2021:i:c:s0261560620302990
    DOI: 10.1016/j.jimonfin.2020.102343
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    References listed on IDEAS

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