The recent downgrade of French government debt by Standard & Poor’s from AA+ to AA coupled with the continuing eurozone sovereign debt crisis and the near technical default of the US because of Congressional posturing over raising the debt ceiling has shaken confidence in the sector. The concept of a ‘risk-free’ sovereign may be something of the past.
Many managers argue sovereigns are becoming increasingly risky assets. In fact, one hedge fund has shunned the most indebted countries, which now
The week on Risk.net, December 2–8, 2017Receive this by email