Thursday, March 11, 2010

Sovereign Risk Chart

The Globe and Mail1 offers a heat chart of sovereign risk2 across six categories, and ranked across their average (scroll down to find it). It is sourced to the Royal Bank of Canada.

The U.S. ranks well on government spending – which isn’t something you’ll hear pundits say. Not surprisingly, we rank poorly on fiscal and structural balance.

1 This is a nationally available newspaper published in Toronto: Canada’s equivalent to The New York Times.

2 Sovereign risk refers to default by a country. In the old days, the sovereign was the individual member of the royalty in charge, and at that time bankruptcy on their part was equivalent to bankruptcy of the entire government.

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