Sat, Jul 22, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

BlackRock's new Sovereign Debt Index ranks Norway, Sweden and Switzerland most economically sound nations

Wednesday, June 29, 2011
Opalesque Industry Update – Sovereign debt risk is one of the biggest macro themes of 2011, and global asset management firm BlackRock announced on Tuesday the launch of the BlackRock Sovereign Risk Index, an index that will numerically rank countries according to “relevant fiscal, financial and institutional metrics.”

While many measure sovereign debt risk according to debt-to-GDP ratio, the firm discussed in a white paper how other factors influence a country’s ability to pay its debt. These include the term structure and maturity profile of the debt. “If a government has sufficient time to decide how to restructure its debt or establish measures to cut costs, it is significantly less likely to be forced into making a difficult decision.” For example, the United Kingdom has a long-term debt structure. Greece did not.

The index, as released on Tuesday, ranks Norway at the top and unsurprisingly, Greece at the bottom. Norway benefits from “extremely low absolute levels of debt, a strong institutional context and very limited risks from external and financial shocks.” Joining Greece at the bottom are Portugal, Venezuela, Egypt and Italy.

BlackRock’s Index team points out that Greece and Ireland (both ranked toward the bottom of the Index) are in their individual places due to highly different factors – Ireland due to the size and quality of its banking sector and Greece as the result of government fiscal dynamics. “Therein lies one of the most valuable features of this index: the ability to explore in detail the drivers of a specific country’s rankings.” Says the firm.

The country rankings are as follows:

  1. Norway
  2. Sweden
  3. Switzerland
  4. Finland
  5. Australia
  6. Canada
  7. Denmark
  8. Chile
  9. S Korea
  10. Germany
  11. New Zealand
  12. Netherlands
  13. Austria
  14. China
  15. USA
  16. Thailand
  17. Malaysia
  18. Russia
  19. Peru
  20. Czech Republic
  21. Israel
  22. UK
  23. France
  24. Indonesia
  25. Philippines
  26. Japan
  27. Belgium
  28. Brazil
  29. Croatia
  30. Colombia
  31. Poland
  32. India
  33. S Africa
  34. Mexico
  35. Turkey
  36. Spain
  37. Argentina
  38. Ireland
  39. Hungary
  40. Italy
  41. Egypt
  42. Venezuela
  43. Portugal
  44. Greece

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Already above average, Singapore high-networth investors add hedge funds and alternative investments[more]

    Komfie Manalo, Opalesque Asia: An above-average proportion of Singaporean HNW wealth is allocated to alternative investments - the majority of which is held in hedge funds, according to the latest research by ReportLinker. In its report entitled, Wealth in Singapore: HNW Investors 2017

  2. Launches - Crypto boom: 15 new hedge funds want in on 84,000% returns, Crypto madness is striking VCs as Union Square analyst leaves to start new fund[more]

    Crypto boom: 15 new hedge funds want in on 84,000% returns From Forbes.com: With 43 projects raising $1.2 billion in initial coin offerings since May 1, according to Nick Tomaino's The Control, and with stratospheric returns for so many ICOs -- 82,000% for Ethereum, 56,000% for IOTA, 44,

  3. FinTech - The machines are coming... Elon Musk's grim warning, Tezos' $232 million ICO may just be the beginning, A gentle introduction to Initial Coin Offerings (ICOs), Billion dollar tokens, ICOS & crazy market swings WTF is going on!?, How AI is changing the way we invest, How the tech revolution is bringing flip-flops and beanbags to Wall Street, A 'machine-learning' approach to venture capital[more]

    The machines are coming... Elon Musk's grim warning From Tenplay.com.au: Tesla chief Elon Musk has called on US Governors to take 'decisive' action to curtail "the greatest risk we face as a civilization": Artificial Intelligence, or AI. Speaking at a meeting of the National Governor Ass

  4. News Briefs – Sears inks $200 million credit line from CEO Eddie Lampert's hedge fund, shares jump 9%, Rwanda: Global hedge fund to increase investments[more]

    Sears inks $200 million credit line from CEO Eddie Lampert's hedge fund, shares jump 9% Sears Holdings has landed a fresh line of credit, valued at $200 million, from its CEO Eddie Lampert's hedge fund, the retailer said Monday. Sears' stock climbed about 9 percent higher Monda

  5. Despite current limits, robo-advisors will be preferred investment solution for retail, gain importance for affluent and high net worth[more]

    Matthias Knab, Opalesque: Flynt, a Swiss FinTech focusing on proprietary technology platform for private and institutional clients, has published a brief paper on "Investing in the world of robo-advice and passive instruments". As investors will become more reluctant to pay for investment advi