01882cas a2200253 a 4500 AALejournalIMF019370 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498317375 1018-5941 BD-DhAAL BD-DhAAL Andritzky, Jochen. Long-Term Returns in Distressed Sovereign Bond Markets : How Did Investors Fare? / Jochen Andritzky, Julian Schumacher. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (31 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Sovereign debt restructurings are perceived as inflicting large losses to bondholders. However, many bonds feature high coupons and often exhibit strong post-crisis recoveries. To account for these aspects, we analyze the long-term returns of sovereign bonds during 32 crises since 1998, taking into account losses from bond exchanges as well as profits before and after such events. We show that the average excess return over risk-free rates in crises with debt restructuring is not significantly lower than the return on bonds in crises without restructuring. Returns differ considerably depending on the investment strategy: Investors who sell during crises fare much worse than buy-and-hold investors or investors entering the market upon signs of distress. Mode of access: Internet Schumacher, Julian. IMF Working Papers; Working Paper ; No. 2019/138 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/138/001.2019.issue-138-en.xml IMF e-Library