What if Ethiopia bondholder deal sets a Common Framework precedent?
Ethiopia's agreement with private creditors becomes a template that speeds other African restructurings, compressing distressed African spreads.
how we built this number — every step
The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.
The butterfly cascade
How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.
Resolution timeline — how this probability is moving
Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 1–3 years horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.
What it would mean
If this plays out, it is a risk-on shock. Ethiopia's agreement with private creditors becomes a template that speeds other African restructurings, compressing distressed African spreads. The trigger decomposes into signed root‑shocks — EM currencies ▲ · Credit spreads ▼ · Risk appetite ▲ — which propagate through our causal graph to the markets below.
If it happens — the markets it would move
Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.
| Market | Class | Projected move | |
|---|---|---|---|
| 1 | MicroStrategy MSTRon Hyperliquid 📈 chart | Equity | ▲ +0.7% hist -5.61–+12.0% · other way +12.92% (n=12) |
| 2 | Solana SOLon Hyperliquid 📈 chart | Crypto | ▲ +0.6% hist -3.13–+6.97% · other way -4.46% (n=10) |
| 3 | High-yield credit HYG 📈 chart | Rate | ▲ +0.5% hist -0.13–+0.28% · other way +0.2% (n=12) |
| 4 | Hyperliquid (HYPE) HYPEon Hyperliquid | Crypto | ▲ +0.5% model prior · unmeasured |
| 5 | Volatility (VIX) VIXon Hyperliquid 📈 chart | Vol | ▼ -0.5% hist -2.36–+0.62% · other way +6.23% (n=12) |
| 6 | Nasdaq 100 NDXon Hyperliquid 📈 chart | Index | ▲ +0.4% hist -0.01–+0.65% · other way +0.4% (n=12) |
| 7 | Ether ETHon Hyperliquid 📈 chart | Crypto | ▲ +0.4% hist -0.92–+2.69% · other way -4.27% (n=10) |
| 8 | Turkish lira TRY 📈 chart | FX | ▲ +0.4% hist +0.05–+0.31% · other way -0.13% (n=12) |
| 9 | Bitcoin BTCon Hyperliquid 📈 chart | Crypto | ▲ +0.4% hist -2.65–+6.87% · other way +0.35% (n=11) |
| 10 | Indian rupee INR 📈 chart | FX | ▲ +0.3% hist -0.05–+0.22% · other way +0.32% (n=12) |
| 11 | Financials XLF 📈 chart | Equity | ▲ +0.3% hist -0.03–+0.23% · other way +1.29% (n=12) |
| 12 | S&P 500 SPXon Hyperliquid 📈 chart | Index | ▲ +0.3% hist -0.04–+0.53% · other way -1.91% (n=12) |
| 13 | Tech sector XLK 📈 chart | Equity | ▲ +0.3% hist -0.11–+0.64% · other way +0.15% (n=12) |
| 14 | JPMorgan JPM 📈 chart | Equity | ▲ +0.3% hist -0.11–+0.66% · other way +2.67% (n=12) |
Probable recommendation
Historical precedent — what analogous events actually did
Across 40 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.
| Asset | History says | Abnormal (20d · 5d) | Hit | n | Confidence | vs cascade |
|---|---|---|---|---|---|---|
| SMH SMH | LONG | +1.8% · 5d -0.2% ↺ fades | 65% | 40 | 0.26 | ✓ matches cascade |
| 10y yield DGS10 | LONG | +6bp · 5d +3bp | 65% | 40 | 0.23 | · |
| SPX SPX | LONG | +0.3% · 5d +0.7% | 62% | 40 | 0.21 | ✓ matches cascade |
| High-yield credit HYG | SHORT | -0.3% · 5d -0.1% | 62% | 40 | 0.18 | ⚠ differs |
| NDX NDX | LONG | +0.4% · 5d -0.7% ↺ fades | 62% | 40 | 0.18 | ✓ matches cascade |
| Volatility VIX | SHORT | -2.0% · 5d -6.8% | 60% | 40 | 0.15 | ✓ matches cascade |
| INR INR | SHORT | -0.2% · 5d +0.1% ↺ fades | 60% | 40 | 0.14 | ⚠ differs |
| JPM JPM | LONG | +0.5% · 5d -0.6% ↺ fades | 57% | 40 | 0.12 | ✓ matches cascade |
| Bitcoin BTC | LONG | +6.3% · 5d -1.9% ↺ fades | 56% | 36 | 0.10 | ✓ matches cascade |
| CNY CNY | SHORT | -0.3% · 5d -0.2% | 55% | 40 | 0.10 | ⚠ differs |
| XLF XLF | SHORT | -0.2% · 5d -0.5% | 55% | 40 | 0.08 | ⚠ differs |
| Gold XAU | SHORT | -0.6% · 5d -0.8% | 55% | 40 | 0.08 | · |
| ETH ETH | LONG | +2.4% · 5d -4.0% ↺ fades | 55% | 31 | 0.07 | ✓ matches cascade |
| MSTR MSTR | LONG | +11.4% · 5d -1.9% ↺ fades | 47% | 40 | 0.00 | ✓ matches cascade |