Sovereign Default

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Dictionary Says

Definition of 'Sovereign Default'

A failure on the repayment of a county's government debts. Countries are often hesitant to default on their debts, since it will be difficult and expensive to borrow funds after a default event. However, sovereign countries are not subject to normal bankruptcy laws and have the potential to escape responsibility for debts without legal consequences.
Investopedia Says

Investopedia explains 'Sovereign Default'

Sovereign defaults are relatively rare, and are often precipitated by an economic crisis affecting the defaulting nation. Investors in sovereign debt closely study the financial status and political temperament of sovereign borrowers in order to determine the risk of sovereign default.

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'Sovereign Default'

  • 7 Things You Didn’t Know About Sovereign Debt Defaults ...

    http://financialedge.investopedia.com/financial-edge/0911/7-Things-You-Didnt-Know-About-Sovereign-Debt-Defaults.aspx
    ... Investors have renewed their obsessing over the risk of sovereign default, as fear
    creeps back into the market that contagion will lead to a replay of the ...

  • A New World For Bond Investors - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0611/A-New-World-For-Bond-Investors.aspx
    ... Sovereign Default - Not Just a Third World Phenomenon Defaults on sovereign debt
    are hardly new; Africa and South America have struggled with them for years ...

  • The History Of Greek Sovereign Debt Defaults - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0911/The-History-Of-Greek-Sovereign-Debt-Defaults.aspx
    ... 1932 Default In the early 1930s, many countries defaulted on sovereign debt obligations
    as the world economy contracted and entered what became known as the ...

  • Investing In Sovereign Bonds - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0212/Investing-In-Sovereign-Bonds.aspx
    ... Investors have used the credit default swap (CDS) to speculate, as well as hedge
    off the viability of a sovereign's obligations to its creditors, sometimes ...

  • An Oversold Market Means Bargains

    http://stocks.investopedia.com/stock-analysis/2010/An-Oversold-Market-Means-Bargains-AIG-X-R-MOT-IVZ0209.aspx
    ... Other countries the market believes have a high degree of sovereign default risk
    as measured by the CDS market are Argentina, Venezuela and Dubai. ...

  • The Risks Of Sovereign Bonds

    http://www.investopedia.com/articles/bonds/the-risks-of-sovereign-bonds.asp
    ... Credit Events for Sovereign Investors There are several types of negative credit
    events that investors should be aware of, up to and including a debt default. ...

  • Central Banks Take Another Kick At The Can

    http://stocks.investopedia.com/stock-analysis/2011/Central-Banks-Take-Another-Kick-At-The-Can-STD-BCS-UBS-SPY-IEF-GLD-GE0920.aspx
    ... off in the wake of this announcement as it looks like the fear trade is going to
    have to wait a bit to see another big bank collapse or a sovereign default. ...

  • Bonds That Look Better Than Treasuries

    http://stocks.investopedia.com/stock-analysis/moneyshow/BondsThatLookBetterThanTreasuries.aspx
    ... Although we no longer consider sovereign credit-default swaps to be the best indicator
    of credit risk, the swaps for Spain and Italy widened to 350 and 300 ...

  • What Is A Corporate Credit Rating?

    http://www.investopedia.com/articles/03/102203.asp
    ... C, D, Junk, In Default. Sovereign Credit Ratings As previously mentioned, a rating
    can refer to an entity's specific financial obligation or to its general ...

  • The 6 Scariest Possibilities For The US Economy - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1011/Top-6-Scariest-Possibilities-For-The-U.S.-Economy.aspx
    ... Collapse of Credit Markets It seems all but given that Greece is going to
    have to default on its sovereign debt. Greece's government ...

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