Tuesday, February 14, 2012


The Ishares blog recently highlighted the latest BlackRock Sovereign Risk Index showing where nations lie on the spectrum of riskiest sovereigns. The list is useful in better understanding the nations that one might prefer to avoid currently. Particularly useful for macro investors. The list shows most European nations at the riskiest end of the spectrum with the takeaway, in my opinion, being don’t bother considering investments in that region. Scandinavian nations sit at the opposite end

The BSRI uses more than 30 quantitative variables to track sovereign credit risk, complemented by qualitative insights from third-party sources. The index breaks down the data into four main categories that each count toward a country’s final BSRI score and ranking: Fiscal Space (40%), Willingness to Pay (30%), External Finance Position (20%) and Financial Sector Health (10%). Read more....

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