sovereign risk

The risk of investment in foreign countries in which the political and economic situation might lead to a government expropriation of private assets.

Accounting dictionary. 2014.

Look at other dictionaries:

  • Sovereign risk — The risk that a central bank will impose foreign exchange regulations that will reduce or negate the value of FX contracts. Also refers to the risk of government default on a loan made to it or guaranteed by it. The New York Times Financial… …   Financial and business terms

  • sovereign risk — The risk that a central bank will impose foreign exchange regulations that will reduce or negate the value of foreign exchange contracts. Also refers to the risk of government default on a loan made to a country or guaranteed by it. The… …   Financial and business terms

  • sovereign risk — Fin the risk that an overseas government may refuse to repay or may default on a sovereign loan …   The ultimate business dictionary

  • Sovereign Risk — The risk that a foreign central bank will alter its foreign exchange regulations thereby significantly reducing or completely nulling the value of foreign exchange contracts. This is one of the many risks that an investor faces when holding forex …   Investment dictionary

  • sovereign risk — /ˌsɒvrɪn rɪsk/ noun a risk that a government may default on its debts (a government cannot be sued if it defaults) …   Dictionary of banking and finance

  • sovereign risk — See political credit risk …   Big dictionary of business and management

  • Risk — Typically defined as the standard deviation of the return on total investment. Degree of uncertainty of return on an asset. The New York Times Financial Glossary * * * ▪ I. risk risk 1 [rɪsk] noun 1. [countable, uncountable] the possibility that… …   Financial and business terms

  • risk — (1) Noun The possibility of loss. (2) Noun The uncertainty of whether events, expected or otherwise, will have an adverse impact. In this context, the adverse impact is usually a quantity of return ( income) or value at risk. (3) Noun the… …   Financial and business terms

  • sovereign — /ˈsɒvrən / (say sovruhn) noun 1. someone who has sovereign power or authority, especially a monarch. 2. a group or body of persons or a state possessing sovereign authority. 3. a former British gold coin. –adjective 4. belonging to or… …   Australian English dictionary

  • sovereign loan — Fin a loan by a financial institution to an overseas government, usually of a developing country. See also sovereign risk …   The ultimate business dictionary

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