Its real problems are its messy funding, and
sovereign debt exposure.
Not exact matches
What we don't know the state of credit default swaps held by banks against
sovereign debt and against European banks, nor do we know the state of CDS held by British banks, nor are we certain of how certain the
exposure of British banks is to the Ireland
sovereign debt problems.»
We don't trade directly with the region much — only 9.6 % of our exports go to western European countries — and our financial institutions have almost no
exposure to European
sovereign debt.
With little
exposure to
sovereign debt, excellent liquidity and a strong balance sheet that is growing stronger, Credit Suisse's financial strength satisfies our investment criteria.
The Fund seeks to maximize total return by investing in a diversified, risk - balanced global market portfolio with
exposure to global equities,
sovereign debt, inflation - protected securities and commodities.
Within the broad EM
debt asset class, U.S. investors looking for EM bond
exposure without explicit currency risk may want to consider dollar - denominated
sovereign bonds like the iShares J. P. Morgan USD Emerging Markets Bond ETF (EMB).
The fund invests, under normal circumstances, at least 80 % of its net assets plus any borrowings for investment purposes (measured at the time of purchase)(«Net Assets») in
sovereign and corporate
debt securities of issuers in emerging market countries, denominated in the local currency of such emerging market countries, and other instruments, including credit linked notes and other investments, with similar economic
exposures.
The balance of trade, investor and consumer confidence,
exposure of banks in one region to
sovereign debt in another, the spread of asset / mortgage - backed securities from US financial firms to European banks, companies, municipalities, etc. all play a role.
Additional risks include
exposure to less developed or less efficient trading markets; social, political or economic instability; fluctuations in foreign currencies or currency redenomination; potential for default on
sovereign debt; nationalization or expropriation of assets; settlement, custodial or other operational risks; and less stringent auditing and legal standards.