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Sovereign finances survived the global recession, just barely in some cases, but now Puerto Rico and Venezuela are insolvent. While the reasons for their plight may differ, there are lessons common to all defaults that investors and citizens should heed.

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  1. The Long and Winding Road to a Haircut
    People queue to withdraw money from an ATM in Caracas Federico Parra/Getty Images

    The Long and Winding Road to a Haircut

    Nov 30, 2017 Carmen M. Reinhart predicts that key similarities between Puerto Rico and Venezuela will emerge as their debt sagas play out.

  2. Restructuring Debt in the Dark
    Venezuela Federico Parra/Stringer

    Restructuring Debt in the Dark

    Oct 6, 2016 Ricardo Hausmann & Mark Walker examine the perils holdout creditors now pose for countries, like Venezuela, facing sovereign default.

  3. A Step Forward for Sovereign Debt
    Coins of various currency.

    A Step Forward for Sovereign Debt

    Nov 9, 2015 Joseph E. Stiglitz & Martín Guzmán believe that restructuring should be subject to nine principles adopted in September by the UN.

  4. Puerto Rico in Crisis
    Puerto Rico flag Arnold Drapkin/ZumaPress

    Puerto Rico in Crisis

    Sep 2, 2015 Anne O. Krueger says that the US and the island's government both bear responsibility for the deepening crisis.

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