28.04.2025Navigating the World of Sovereign Debt

SFI Roundups is a regular publication series by the Swiss Finance Institute (SFI), offering expert insights on key financial topics. Each edition brings together leading academics and industry professionals to explore trends such as FinTech, real estate, and sustainable investing.

The current edition features a range of perspectives on the rapidly evolving world of sovereign debt, including contributions from Prof. Michel Habib and Prof. Steven Ongena from our department. They are joined by Dr. Juerg Adamek (State Secretariat for International Finance – SIF), Frederick Mellors (UBS Wealth Management), and Prof. Andreas Müller (University of Basel).

As global debt levels rise, governments, banks, and investors must find ways to manage risks while seizing long-term opportunities. Key topics in this Roundup include debt restructuring, market liquidity, and the role of sovereign wealth funds. Additional themes such as the impact of inflation, central bank policies, and the role of private creditors in shaping debt negotiations are also discussed.

"The liquor sale monopoly of a Canadian Province used to have as its advertising slogan "la modération a bien meilleur goût-moderation tastes far better."  Whether one agrees with that statement or not, it is certainly true that moderation helps avoid painful hangovers. This is true in debt as in alcohol."
-Michel Habib

"Debt restructuring, as a tool, is not inherently negative. While it generally occurs during chaotic and distressing periods, it should be regarded as a ‘second-best’ solution, as it is frequently the only viable path forward."
-Steven Ongena