Please join us for the CBA Research Seminar Series on Friday, August 30th at 3:00 PM in MH 215. 

Dr. Manuel Amador from the University of Minnesota and affiliated with the Research Department of the Federal Reserve Bank of Minneapolis will be the speaker.

Paper title: Sovereign Swaps and Sovereign Default: Fundamental versus Confidence Risk

Abstract:

In this paper, we show that the reaction of bond prices to unexpected and voluntary sovereign debt swaps are informative about the sources of default risk affecting sovereign bonds. We show that a model with only fundamental risks struggles to generate an increase in bond prices after the announcement of a swap that extends maturity; a result that can naturally arise in a model where confidence runs plays also a role in determining asset pricing. We use the Dominican Republic's sovereign debt buyback in December 2020 to illustrate the mechanisms.

Short bio:

Dr. Manuel Amador is an economist affiliated with the Research Department of the Federal Reserve Bank of Minneapolis and the University of Minnesota. His areas of interest are macroeconomic theory and international economics. He received his Ph.D. in economics from the Massachusetts Institute of Technology. Currently, he serves as an associate editor at the American Economic Review, Econometrica, the Journal of International Economics, and the Review of Economic Studies.

Dr. Amado has also been an assistant professor of economics in the Department of Economics at Stanford University, at Harvard University and at Stanford Graduate School of Business. He has been a visiting professor at Princeton University and is a Faculty Research Fellow at the National Bureau of Economic Research. His work has been published in several prominent economics journals, among them the Quarterly Journal of Economics, the Journal of Political Economy, and Econometrica.

Below is a link to his homepage:

https://manuelamador.me/

This event is open to ALL UNO Faculty and Staff.

Seminars can be fun, engaging, and informative!  The presentation and discussion can stimulate ideas for new research projects.

Please sign up and reserve August 30^th at 3:00 PM for the seminar at the Eventbrite link below.

Link to seminar website: Sovereign Swaps and Sovereign Default: Fundamental versus Confidence Risk