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.