Diaspora Bonds: Patriotism or Profit? with G. Mitu Gulati

Wednesday, April 10th, 2024
4:30 PM - 5:30 PM

Add to Calendar: Add to Calendar: 2024-04-10 16:30:00 2024-04-10 17:30:00 Diaspora Bonds: Patriotism or Profit? with G. Mitu Gulati Event Description In the world of sovereign debt instruments, the Holy Grail of financial instruments is the GDP indexed bond. That is, a borrowing instrument that operates counter cyclically. The sovereign would make smaller payments to lenders when times were tough and higher ones during good times. If such products were to be widespread, the risk of sovereign financial crises would be ameliorated. However, years of research have so far yielded little success. The Israeli diaspora bonds program–while not fitting the conventional conception of a GDP indexed bond–might well have found the magic elixir. Spreads between Israeli diaspora bonds and conventional bonds suggest a countercyclical payment pattern. The Israeli program may be sui generis. But it also possible that its design contains clues as to how to design a successful countercyclical sovereign financing program. Speaker Bio Mitu Gulati’s work focuses on sovereign debt restructuring and contracts, and explores how to help countries in financial distress. Gulati joined the UVA Law faculty in 2021. He was previously on the faculty of Duke Law School since 2004, and has also served on the faculties of UCLA Law School and the Georgetown University Law Center. Gulati co-hosts the podcast “Clauses and Controversies,” is a contributor to the blog Creditslips.org and serves as regional editor for the journal Capital Markets Law Journal. Gulati has won no awards, prizes or other distinctions. That is, with the exception of a second place finish in the fancy dress competition in third grade in India.   Moot Courtroom A59 George Gund Hall - School of Law 11075 East Blvd Cleveland, OH 44106 School of Law School of Law America/New_York public

The Center for Business Law

CLE credit for in-person attendance only; however, livestream will be available via YouTube on the day of the event, but NO CLE credit will be given. The link will be found on the event page.

1.0 hour of CLE credit, pending approval

Event Description

In the world of sovereign debt instruments, the Holy Grail of financial instruments is the GDP indexed bond. That is, a borrowing instrument that operates counter cyclically. The sovereign would make smaller payments to lenders when times were tough and higher ones during good times. If such products were to be widespread, the risk of sovereign financial crises would be ameliorated. However, years of research have so far yielded little success. The Israeli diaspora bonds program–while not fitting the conventional conception of a GDP indexed bond–might well have found the magic elixir. Spreads between Israeli diaspora bonds and conventional bonds suggest a countercyclical payment pattern. The Israeli program may be sui generis. But it also possible that its design contains clues as to how to design a successful countercyclical sovereign financing program.

Speaker Bio

Mitu Gulati’s work focuses on sovereign debt restructuring and contracts, and explores how to help countries in financial distress. Gulati joined the UVA Law faculty in 2021. He was previously on the faculty of Duke Law School since 2004, and has also served on the faculties of UCLA Law School and the Georgetown University Law Center. Gulati co-hosts the podcast “Clauses and Controversies,” is a contributor to the blog Creditslips.org and serves as regional editor for the journal Capital Markets Law Journal.

Gulati has won no awards, prizes or other distinctions. That is, with the exception of a second place finish in the fancy dress competition in third grade in India.
 

Event Location

Moot Courtroom A59
George Gund Hall - School of Law
11075 East Blvd
Cleveland, OH 44106

Gulati headshot