BNET Business Dictionary

Business Definition for: Sovereign Risk

  • the risk that an overseas government may refuse to repay or may default on a sovereign loan

Additional Resources

A Fiscal Theory of Sovereign Risk
This paper presents a fiscal theory of sovereign risk and default. Under certain monetary-fiscal regimes, the risk of default, and thus the emergence of sovereign risk premia, are inevitable. The paper characterizes the equilibrium processes of the sovereign risk premium and the default rate under a number of alternative monetary...
Tags: Risk, Theory, National Bureau Of Economic Research, Government, Strategy, Management
White papers 2003-01-01
Sovereign Risk Signs Agreement With the ADB for Vietnamese Power Project — First Issued Under ADB Coguarantee Program
Business Editors HAMILTON, Bermuda--BUSINESS WIRE--Dec. 17, 2002 Sovereign Risk Insurance Ltd. Sovereign announced the signing of a landmark political risk insurance agreement with the Asian Development Bank ADB for a project in Vietnam. Sovereign is supporting ADB's Political Risk Guarantee PRG that covers a commercial financing tranche...
Tags: agreement, Asian Development Bank, FINANCE, Investment
Research articles 2002-12-17
Mexico's sovereign risk closes Friday at record low; 203 basis points.
MEXICO CITY, Sep 22, 2003 (Notimex/Corporate Mexico by Internet Securities, Inc. via COMTEX) -- Mexico's sovereign risk closed last week at a record low of 203 basis points, reported the Treasury Secretariat. In the report for the week of Sept. 15-21, the Treasury states that the...
Tags: INTERNET, MARKETING, Mexico, NETWORKING
Research articles 2003-09-22
Sovereign Risk Hires New Senior Underwriter
Business Editors HAMILTON, Bermuda--BUSINESS WIRE--April 16, 2001 Sovereign Risk Insurance Ltd., Sovereign has announced that Nila Davda has joined Sovereign as Vice President and Senior Underwriting Officer. Ms. Davda comes to Sovereign from the World Bank's International Finance Corporation IFC, where she was a senior syndication officer...
Tags: agency, Bermuda, FINANCE, Insurance, MARKETING, officer, World Bank
Research articles 2001-04-16
Sovereign Risk Launches New Capital Markets Product
Business Editors HAMILTON, Bermuda--BUSINESS WIRE--April 13, 2000 Sovereign Risk Insurance Ltd., the Bermuda-based political risk insurance joint venture between ACE Limited (NYSE:ACL) and XL Capital Ltd (NYSE:XL), has announced that it is offering a new political risk insurance product tailored specifically for cross border capital markets transactions. ...
Tags: ACE Group, Sovereign Risk Insurance Ltd., XL Capital Ltd.
Research articles 2000-04-13
Mexico's sovereign risk at all-time low.
MEXICO CITY, Dec 27, 2004 (Notimex/Corporate Mexico by Internet Securities, Inc. via COMTEX) -- Mexico's sovereign risk, measured with the Emerging Market Bond Index (EMBI+) of JP Morgan, reached a record low of 161 basis points on Monday and Wednesd MEXICO CITY, Dec 27, 2004 (Notimex/Corporate...
Tags: J.P. Morgan Chase & Co., risk
Research articles 2004-12-27
UAE: MOODY'S POSTS SENIOR SOVEREIGN ANALYST IN DUBAI.
Moody's Investors Service has today announced that Mr Tristan Cooper, Vice President-Senior Analyst in the Sovereign Risk Unit, has relocated from London to Dubai, where he will spearhead Moody's sovereign coverage of the Middle East region. His m Moody's Investors Service has today...
Tags: Moody's Corp.
Research articles 2007-10-24
Mexico registers improvements in performance of sovereign debt instruments.
MEXICO CITY, Jul 7, 2003 (Notimex/Corporate Mexico by Internet Securities, Inc. via COMTEX) -- The sovereign risk in Mexico, measured through the EMBI+ index determined by J.P. Morgan, closed at 249 basis points bp on July 3, 18 bp above the level MEXICO CITY, Jul...
Tags: J.P. Morgan Chase & Co., performance
Research articles 2003-07-07
Empirical Determinants of Emerging Market Economies' Sovereign Bond Spreads
This paper investigates the empirical determinants of emerging market sovereign bond spreads, using a ragged-edge panel of JP Morgan EMBI and EMBI Global secondary market spreads and a set of common macro-prudential indicators. This is essentially a dynamic error correction model where cross-sectional coefficients are allowed to vary in the...
Tags: Bond, Emerging Market, Bank Of England, Marketing Research, Investment, Financial Services, Marketing, Finance
White papers 2003-11-18
BBVA:High chance of further drops in country risk.
MEXICO CITY, Sep 08, 2003 (Notimex/Corporate Mexico by Internet Securities, Inc. via COMTEX) -- There is every chance that Mexico's country risk will continue declining due to its economic integration with the United States and the progress made in stability of prices and fiscal prudence, said...
Tags: Banco Bilbao Vizcaya Argentaria S.A., Internet Securities Inc.
Research articles 2003-09-08
Sovereign Bancorp, Inc. Q3 FY07 Earnings Call Transcript
Question-and-Answer SessionOperator [Operator Instructions]. Your first question comes from James Abbott with FBR Capital Markets. James Abbott - Friedman, Billings, Ramsey & Co. The auto portfolio; could you tell us, where the reserve to loan ratio stands on that particular piece of the portfolio? And then...
Tags: Sovereign Bancorp Inc.
Earnings calls 2007-10-18
Country Default Risk Continues Its Rise
Hickey and Walters Bespoke submit: Below we highlight sovereign debt default risk as measured by credit default swap prices. The list below is sorted by year to date percentage change, and as shown, Japan's default risk is up the most in 2009, although it remains on the...
Tags: Emerging Markets, Bespoke Investment Group
External links 2009-03-05
Sovereign Bancorp Inc Q4 2007 Earnings Call Transcript
Earnings Call Excerpt  Sovereign Bancorp Inc SOV Q4 2007 Earnings Call January 24, 2008 9:00 am ET Executives Joe Campanelli - President and Chief Executive Officer Mark R. McCollom – Chief Financial Officer Bob Rose - Head of Risk Management Analysts Gerard Cassidy - RBC Capital...
Tags: Sovereign Bancorp Inc.
Earnings calls 2008-01-24
Risk Management of Contingent Liabilities Within a Sovereign Asset-Liability Framework
Important research has already been made on the potentially destabilizing fiscal impact of contingent liabilities. Additional insights can be gained by working within a broader conceptual framework based on the government's balance sheet. This approach would place contingent liabilities alongside other sovereign exposures arising from both assets and liabilities. A...
Tags: Liability, World Bank Group, Risk Management, Free Trade, Balance Sheets, Financial Planning, Financial Services, Strategy, Finance, Financial Statements, Financial Accounting, Management
White papers 2002-03-08
Standard & Poor's, a rating agency, downgraded Argentina's long-term sovereign debt to CC from CCC+, with a negative outlook, reflecting the country's increased default risk.(Brief Article)
Standard & Poor's, a rating agency, downgraded Argentina's long-term sovereign debt to CC from CCC+, with a negative outlook, reflecting the country's increased default risk. Argentina's stockmarket plunged by 8.9% over the week. Interest-rate s Standard & Poor's, a rating agency, downgraded Argentina's long-term...
Tags: agency, risk, S&P
Research articles 2001-11-03
Fitch Ratings improves rating of Mexican sovereign debt.
MEXICO CITY, Jun 18, 2004 (El Universal/Corporate Mexico by Internet Securities, Inc. via COMTEX) -- Risk-rating agency Fitch Ratings has increased Mexico's sovereign debt rating from "BBB-" to "BBB" due to changes in its rating MEXICO CITY, Jun 18, 2004 (El Universal/Corporate Mexico by...
Tags: Better Business Bureau, Fitch Ratings, Internet Securities Inc.
Research articles 2004-06-18
Mexico's sovereign debt rating to remain at BBB.
MEXICO CITY, Oct 13, 2004 (El Economista/Corporate Mexico by Internet Securities, Inc. via COMTEX) -- Risk-rating agency Fitch Ratings reiterated that without structural reforms, the country's sovereign debt rating, currently at BBB (the lowest inves MEXICO CITY, Oct 13, 2004 (El Economista/Corporate Mexico by Internet...
Research articles 2004-10-13
A Risk Management Approach To Emerging Market's Sovereign Debt Sustainability
This paper studies the question of debt sustainability from a risk management perspective. The debt accumulation equation for any country involves variables that are stochastic and closely intertwined. When these aspects are taken into consideration the notion of debt sustainability is expanded to studying the stochastic properties of the debt...
Tags: Sustainability, National Bureau Of Economic Research, Emerging Market, Risk Management, Financial Planning, Financial Services, Strategy, Security, Finance, Management
White papers 2004-03-01
Fitch Revises Outlook on Ecuadorian Banks To Negative After Sovereign Action
NEW YORK -- Fitch Ratings has revised the Rating Outlook on the long-term foreign currency ratings of Ecuadorian Banks, currently at the sovereign ceiling of 'B-', to Negative from Stable. This change follows a similar action taken on Ecuador's sovereign ratings and reflects increased sovereign credit risk due to greater...
Tags: Fitch Ratings
Research articles 2005-08-29
Fiscal Policy and Financial Markets
This paper introduces fiscal policy in a model of sovereign risk spreads ("Spreads"). Using panel data from emerging market countries, it is found that reductions in public expenditure are a more powerful tool for reducing spreads than increases in revenues. Specifically, cuts in current spending lower spreads by more than...
Tags: Revenue, IMF, Financial, Financial Market, Emerging Market, Marketing Research, Financial Services, Operational Accounting, Financial Accounting, Marketing, Finance
White papers 2006-01-01