Bailing Out Sovereign Debt: An Old Texan Precedent

Posted: 13 May 2005

See all articles by Richard C. K. Burdekin

Richard C. K. Burdekin

Claremont McKenna College - Robert Day School

Date Written: October 2005

Abstract

The fate of the distressed debt issued by the 1836-1845 Republic of Texas has received surprisingly little attention. Annexation by the United States was almost certainly a necessary condition for the debt rising from the pennies-on-the-dollar values seen in the early 1840s. But the largest gains awaited legislation in the early 1850s that fixed the repayment terms on the debt. Statistical analysis confirms the link between the debt price and actual, or anticipated, congressional actions on the debt settlement after 1844.

Keywords: Sovereign debt

Suggested Citation

Burdekin, Richard C. K., Bailing Out Sovereign Debt: An Old Texan Precedent (October 2005). Claremont Colleges Economics Working Paper No. 2004-04, Available at SSRN: https://ssrn.com/abstract=722803

Richard C. K. Burdekin (Contact Author)

Claremont McKenna College - Robert Day School ( email )

500 E. Ninth St.
Claremont, CA 91711-6400
United States
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HOME PAGE: http://www.cmc.edu/rdschool

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