Study Notes: Country Risk: Country Risk: Determinants, Measures, and Implications

Chapter 5. Country Risk Study Notes contain 26 pages covering the following learning objectives:

* Identify sources of country risk.
* Explain how a country’s position in the economic growth life cycle, political risk, legal risk, and economic structure affect its risk exposure.
* Evaluate composite measures of risk that incorporate all major types of country risk.
* Compare instances of sovereign default in both foreign currency debt and local currency debt, and explain common causes of sovereign defaults.
* Describe the consequences of sovereign default.
* Describe factors that influence the level of sovereign default risk; explain and assess how rating agencies measure sovereign default risks.
* Describe characteristics of sovereign credit spreads and sovereign CDS, and compare the use of sovereign spreads to credit ratings.

After reviewing the notes, you will be able to apply what you learned with practice questions.

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