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A better way to induce creditor cooperation in sovereign-debt workouts
The idea travels under different names—“burden sharing,” “intercreditor equity,” “fundamental fairness,” and “comparability of treatment.” But the underlying proposition is the same. All creditors, of whatever stripe, caught up in a distressed sovereign-debt situation share one thing in common: Whatever is disproportionately good for any one creditor or group of creditors will probably be disproportionately bad for all the others. […]