If much or most of the external debt of developing countries could be converted into instruments whose payments were linked to GDP, local currency, local stock markets, the prices of major commodity exports, or any other variable whose performance was... https://www.ft.com/content/1d91548c-71db-11ea-ad98-044200cb277f

...correlated to the underlying performance of the economy, not only would these countries benefit from a sharp reduction in economic volatility, pro-cyclicality, and, most importantly, financial distress costs, but investors would benefit from higher expected returns...

...and the overall system would benefit from an aligning of the interests between the lender and borrower. Much of my 2001 book is spent to explaining how this would work.
https://www.amazon.com/Volatility-Machine-Emerging-Economics-Financial-dp-0195143302/dp/0195143302/ref=mt_other?_encoding=UTF8&me=&qid=