This policy note delves into the complex world of state-contingent debt instruments, focusing on Value Recovery Instruments (VRIs) and the significant challenges associated with their issuance, particularly their asymmetric structure. Starting with an exploration of the history of VRIs, from their inception in the 1989 Brady exchanges to their involvement in recent debt restructurings, this paper provides a comprehensive overview of the theoretical appeal and practical obstacles of contingent sovereign bonds. […]