Key points

• Unnoticed in the literature on sovereign bonds, a number of issuers have begun using ‘doomsday’ or ‘make-whole’ call provisions. These are call options set deep out of the money at issuance.
• This article documents the birth and evolution of these provisions in the sovereign market. Among the earliest users of the clause were Mexico and Brazil in 2006 and 2007. They were then followed by a number of other sovereign issuers from Latin America and the Caribbean. However, there has as yet been little use of the clause in the European, Asian and African markets.
• The article also estimates the rough cost of including such a provision for sovereign issuers. Best we can tell, the markets charge close to nothing for the inclusion of such provisions.

中文翻译：

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主权债券中的弥补

关键点

• 在有关主权债券的文献中没有注意到，许多发行人已开始使用“世界末日”或“全盘”赎回条款。这些是在发行时从资金中设置的看涨期权。
• 本文记录了这些条款在主权市场中的诞生和演变。最早使用该条款的国家是 2006 年和 2007 年的墨西哥和巴西。随后是拉丁美洲和加勒比地区的其他一些主权发行国。然而，该条款在欧洲、亚洲和非洲市场的使用还很少。
• 文章还估算了为主权发行人提供此类条款的粗略成本。我们可以说，市场对包含此类条款的收费几乎为零。