A Model of Safe Asset Determination
研究两个国家发行主权债券满足投资者安全资产需求时，债券基本面相对强弱和发行规模如何影响其安全性，对理解主权债务风险和国际资本流动有参考价值。
What makes an asset a “safe” asset? We study a model where two countries each issue sovereign bonds to satisfy investors’ safe asset demands. The countries differ in the float of their bonds and the fundamental resources available to rollover debts. A sovereign’s debt is safer if its fundamentals are strong relative to other possible safe assets, not merely strong on an absolute basis. If demand for safe assets is high, a large float enhances safety through a market depth benefit. If demand for safe assets is low, then large debt size is a negative as rollover risk looms large.