FT Professional Glossary

Sovereign risk

Country risk

Example usage from an FT article:

Thankfully, there are institutions that warn investors of rising sovereign risk: the rating agencies.

Excerpt from "Will the credit rating agencies stand up to Donald Trump?"

Explore relevant markets & finance articles

Asia-Pacific companies

Chinese ‘dim sum’ bond issuance on track for record year

Low interest rates make renminbi an attractive funding currency for multinational companies

Chinese ‘dim sum’ bond issuance on track for record year image
US interest rates

Investors warn of ‘new era of fiscal dominance’ in global markets

Combination of record government debt and rising borrowing costs puts central banks under pressure

Investors warn of ‘new era of fiscal dominance’ in global markets image
US budget

S&P affirms US credit rating as Trump tariffs boost government revenues

Rating agency expects income from aggressive trade policy to offset tax and spending changes

S&P affirms US credit rating as Trump tariffs boost government revenues image
Emerging market investing

EM companies rush to global debt markets as risk premium falls to near 20-year low

Banks and companies in emerging markets outside China issue debt at fastest pace since 2021

EM companies rush to global debt markets as risk premium falls to near 20-year low image
European companies

US credit spreads hit lowest level this century after sharp rally

Investors warn credit markets are ‘weirdly confident’ despite threats to global economy

US credit spreads hit lowest level this century after sharp rally image