Wall Street Frustrated with Rush to Resolve Sovereign Debt Crises

The $1.6 trillion universe of emerging-market sovereign debt is facing a shakeup as government defaults rise to a record in the developing world. The debate is growing frantic over how to solve these debt crises, with restructuring talks stalling and some countries turning to old-school sweeteners. A pair of bills winding their way through committees in New York would limit how much investors are allowed to recoup when countries restructure their debts, a concept that’s riling up Wall Street. However, advocates say the new rules would help sovereign debtors move on from default faster, cut down negotiating costs and save US taxpayer money.