Towards Sovereign Equity

46 Pages Posted: 15 Jul 2015 Last revised: 17 Dec 2016

See all articles by Stephen Park

Stephen Park

University of Connecticut - School of Business; University of Connecticut - School of Law

Tim Samples

University of Georgia - Terry College of Business

Date Written: November 18, 2016


Sovereigns are unique market participants in the global financial system, and sovereign debt markets largely operate in a legal and regulatory void. This Article adds an important and timely perspective by examining the concept of equity in sovereign debt finance. Governments, unlike corporations, rely almost exclusively on debt to externally finance their investments and operations. GDP-linked securities, which provide interest payments indexed to the sovereign issuer’s rate of growth, are sovereign debt instruments with certain equity-like characteristics. This Article considers whether innovation towards sovereign equity can help mitigate problems associated with sovereign debt crises. To address this question, we analyze the use of GDP-linked securities in recent sovereign debt restructurings by Argentina, Greece, and Ukraine. Drawing on this analysis, we explore more broadly the legal implications of sovereign equity, and conclude that these applications offer opportunities to help manage sovereign finance in the absence of readily enforceable international financial regulation.

Keywords: Sovereign Debt, International Financial Regulation, GDP-Linked Securities, Sovereign Equity, Argentina, Greece, Ukraine

Suggested Citation

Park, Stephen and Samples, Tim, Towards Sovereign Equity (November 18, 2016). Stanford Journal of Law, Business, and Finance, Vol. 21, No. 2, 2016, Available at SSRN: or

Stephen Park (Contact Author)

University of Connecticut - School of Business ( email )

Storrs, CT 06269
United States

University of Connecticut - School of Law ( email )

65 Elizabeth Street
Hartford, CT 06105
United States

Tim Samples

University of Georgia - Terry College of Business ( email )

A425 Moore-Rooker Hall
Athens, GA GA 30602-6269
United States


Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
PlumX Metrics