Sovereign risk: Difference between revisions
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* [[Sovereign]] | * [[Sovereign]] | ||
* [[Sovereign debt]] | * [[Sovereign debt]] | ||
* [[Sovereign risk]] | |||
[[Category:Financial_risk_management]] | [[Category:Financial_risk_management]] | ||
Revision as of 15:42, 22 September 2022
1.
Sovereign risk indicates the maximum creditworthiness of a counterparty – no organisation can be more creditworthy than its home country’s central bank.
Sovereign risk also includes concepts such as expropriation, war and civil unrest.
2.
Sovereign risk can also mean the risk of losses arising from default on sovereign debt.
