(4/4) This work offers new insights into sovereign default, negotiation regimes, and the role of international institutions in debt markets. Highly recommended for anyone interested in sovereign debt, macroeconomics, or international finance!

(3/4) Her model features sovereign default with endogenous debt maturity and two negotiation regimes and shows that IMF conditionality helps governments commit to fiscal adjustment, resulting in longer debt maturities and higher long-bond prices after restructuring.

(2/4) 🔎 Teresa constructs a novel dataset classifying restructuring episodes by negotiation type. She finds that restructurings under IMF programs lead to:
a. Larger maturity extensions
b. Higher haircuts
c. Faster return to international credit markets