On Sovereign Debt. And Companies > Individuals > Sovereigns


On sovereign credits:

“One of the great things about making loans to business leaders in the United States is that when there is a change of management, the new management has to recognize the liabilities of the old management. Sometimes when you make loans to sovereign countries, the new management does not recognize the liabilities of the old management.”

And default rates of sovereigns vs individuals vs private companies:

“The best credit by far, history has shown, has been the private company. Sovereign countries have defaulted 30 times as often as private companies, both domestically and foreign. Individuals default five times as often as private companies.”

Interesting current example making the news right now, Argentina and its imminent sovereign bond default:
Why Argentina may default on its debts

And like Milken said, sovereigns’ default record hasn’t been exemplary, especially Argentina and its eight defaults in 200 years:
Argentina Bust Lures Investors After 200 Years of Defaults

Paul Singer has his finger in many places around the world:
Argentina Defaults As Battle Against Billionaire Paul Singer’s Elliott Drags On

Including here in Singapore. But sometimes, itchy fingers get burnt:
Hedge Fund Elliott Meets Match in Singapore’s OCBC
In Wing Hang Fight, Elliott Backs Away



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