G11: Sovereign credit-risk and international mergers and acquisitions

Document description

Many firms pursue international strategies in territories where domestic government debt is rated well below AAA. This talk will:

• contrast the different shareholder issues this raises for international insurers vs purely domestic players
• consider arguments for and against “wrapping” the domestic government debt and identify an MCEV blindspot
• develop an argument as to why government bonds (not swaps) represent a suitable starting point for regulatory valuations.