"The nice thing about sovereign debt is they cannot pay you at the end and you can't grab anything from them"
If only that were true. As Greece and Argentina are now experiencing, if they included in their covanents the U.S.A. as the jurisdiction of choice.
This issue is currently being appealed by the Argentinian government and it remains to be seen if Foreign Policy considerations can obviate Sovereign Bond contracts. This is one of my current interests as the current fashion of allowing external jurisdictions to control "any" portion of a Country's economy (or national interest) is eroding.