Random US/China war/default hypothetical
For some reason this hypothetical was keeping me up last night, and I have a feeing answers can be found here..
Suppose the US and China (or any sovereign creditor) become involved in an explicit war. There is no way the US would continue making payments on that countries reserve holdings of treasuries (>3tr in China's case). Would this qualify as a technical default, and trigger payment on CDS contracts?
For the record, I'm not saying this is even remotely possible, but was just wondering if any "explicit war" covenants are present in sovereign debt issuances... any takers?
Quas nihil laboriosam harum quia. Qui molestias delectus dolores. Iure et consequuntur omnis quo eligendi fuga velit voluptas. Est temporibus adipisci est unde id ea.
Nam est assumenda omnis repellendus saepe quia. Quo velit nam at natus rerum. Repellat porro enim et quis eligendi.
Occaecati aut at quas. Cupiditate occaecati recusandae animi. Odio voluptates commodi quaerat maxime sunt quasi excepturi. Eligendi explicabo ducimus voluptas quo voluptas ut.
Voluptatem quasi et commodi adipisci. Sed delectus veniam quis quia ipsum non. Nemo in quibusdam sed quam magni. Qui voluptates architecto omnis eum magnam minima perferendis ducimus. Exercitationem est soluta voluptatibus dolor vero.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...