Sovereign Risk Management 2010

Measurement, management and hedging of sovereign credit risk

In the wake of the credit crisis financial institutions are now faced with the sovereign debt crisis. Sovereign issuances, previously the cornerstone of portfolio management, are no longer considered to be the safe bets that they once were and practitioners are less willing to buy from certain markets. In Europe we have already seen Greece s troubles, with other states being drawn into this too. How should we treat these sovereigns, which now resemble developed economies less than emerging markets? Furthermore, what are the effects likely to be on states such as France, Germany, the UK and US? Practices evolve and adapt in order to keep pace with the market, and already we are seeing changes in strategies for sovereign bond and CDS trading. Mastering the new sensitivities of the market will be key to a forward thinking and industry leading strategy.

key conference topics

• The state of the eurozone
• Developing a sovereign risk scorecard
• Pricing soveriegn risk
• Assessing liquidity
• Dissecting heightened sovereign risk at the European periphery