Institutional Investor Index

AAA

DEFINITION of 'Institutional Investor Index'

A measure of sovereign debt risk that is published biannually in the March and September issues of Institutional Investor magazine. The Institutional Investor Index is an indicator used to identify and measure economic conditions of booms and crises. The Index is constructed by requesting survey responses from between 75 and 100 investment bank research departments (such as loan officers with major multinational banks) who provide evaluations of a particular country or countries. The answers are then weighted in accordance with the particular bank's global exposure and the level of sophistication for that country's analysis systems.

INVESTOPEDIA EXPLAINS 'Institutional Investor Index'

The Institutional Investor Index is a country risk assessment model available to investors. Country risk refers to a collection of risks related to investing in a foreign country, including political risk, exchange rate risk, economic risk, sovereign risk and transfer risk. Country risk is an important consideration for individuals and institutions interested in foreign investments. The Institutional Investor Index is based on responses made my bank officers who provide subjective evaluations of a particular country's credit quality. The scores of the Index range from 0 (zero), implying certain default, to 100 which implies no probability for default.

RELATED TERMS
  1. Country Risk

    A collection of risks associated with investing in a foreign ...
  2. Credit

    1. A contractual agreement in which a borrower receives something ...
  3. Institutional Investor

    A non-bank person or organization that trades securities in large ...
  4. Political Risk

    The risk that an investment's returns could suffer as a result ...
  5. Economic Indicator

    A piece of economic data, usually of macroeconomic scale, that ...
  6. Foreign remittance

Related Articles
  1. Investing Beyond Your Borders
    Insurance

    Investing Beyond Your Borders

  2. Evaluating Country Risk For International ...
    Options & Futures

    Evaluating Country Risk For International ...

  3. 3 Ways You Can Evaluate Country Risk
    Economics

    3 Ways You Can Evaluate Country Risk

  4. Evaluating Bond Funds: Keeping It Simple
    Mutual Funds & ETFs

    Evaluating Bond Funds: Keeping It Simple

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center