Norway is the least-risky nation on the planet, Greece is the riskiest country, and the debt of the United Kingdom is surprisingly suspect relative to other developed nations, according to a new index of sovereign risk just released by BlackRock , the largest publicly traded asset manager.
ordic country “benefits from extremely low absolute levels of debt, a strong institutional context and very limited risks from external and internal financial shocks,” said Benjamin Brodsky, head of fixed income asset allocation at the firm, which has $3.65 trillion under management.
BlackRock created the investing tool to capitalize on macro themes that have dominated headlines as Europe’s woes and the U.S. debt ceiling become the biggest issues of 2011. Macro investing has also seen more inflows than any other hedge-fund category this year, according to a number of surveys.
The asset manager attempts to go a step further than just the usual debt-to-gross-domestic-product ratio analysis. It also factors in an exhaustive list of metrics that fall under four broad categories: proximity to distress, external finance position, banking sector health and willingness to pay.Page 1 of 4 | Next Page