Sovereign debt restructuring
A rewriting of government debt terms: maturities pushed out, coupons cut, or an exchange into new bonds of smaller size.
How to read the number
For a holder it is a legalised loss: formally there is no default, but the present value of what arrives is below what the purchase assumed.
When the metric lies
A dissenting minority of holders can block the deal in court for years — which is why modern issues carry collective action clauses.
Also known as: debt exchange